TELECOM INDUSTRY TO OUTSOURCE $1... err, $1 TRILLION WORTH OF SERVICES

If the story is accurate, it seems that the Telecom industry's move to outsource a large amount of its business processes will be done to insure its own survival.

"With increased competition and lower-margin products cutting into their profitability, wireline and wireless carriers will be spending nearly USD 1.4 trillion over the next five years on outsourced services in order to reduce costs, according to Insight's newly-released market analysis report titled "Service Bureaus, Outsourcing and Telecommunications Networks 2007-2012."

Well, let's look at it this way, before Voice Over IP (VOIP) was introduced, the consumers all over the world spent a lot of money on long distance and related phone charges. The telecom companies all over the world then made a lot of money. Now, they have to cut down on costs through outsourcing in order to be able to keep up with the times. Though I symphatize end even worry for the employees who will be forced to look for other jobs, a large part of me rejoices at the thought that the consumers are ultimately benefiting.

Reduced communication costs will further result to more economic activity and create more jobs for the economy. That should be good enough for all of us.