Frist it was simple manufacturing--toys, dog food, and the. like--that was outsourced to Asia. This was OK because even though manufacturing could be outsourced to China and India, the real value driver of the Western economy--sevices--could never be outsourced. Or at least that was what we thought.
And then firms started outsourcing call centers and tax preparation and travel planning and a host of other services to India and the Philippines. Anything that could be done on a phone or online, it seemed, could be done cheaper in Asia. Sometimes, the quality of the service was compromised, but with training and additional technological deverlopment, maybe even these problems could be addressed. And this was OK because the real valuedriverof the Western economy--research and intellectual property--could never be outsourced. Or at least that was what we thought.