Originally posted by J_A_B
Then why hasn't my phone bill gotten any cheaper after my phone company outsourced so much of its staff to India? After all, supposedly the labor savings would be passed on to the consumer in the form of lower prices, right?
You can't make such conclusions based on a single company.
The only way you would see a difference in the price, would be that all competition would be using american labor, as well as the subcontractors.
All that would drive up the prices real good.
However quite likely their hardware is made in asia, which saves alot money.
Hard to find any computers anymore, which would be mostly created in the west (aka pricey countries).
Few parts might be made in the west and assembled, but the core stuff is made in asia, probably by an american company whos main production lines are in asia (or partners/subcontractors).
Therefore outsourcing the support doesn't affect much in the long list of "outsourcing".
The natural inflation most likely just manages to keep the prices at usual levels.
Then again it is also nice to make big profits.. wohoo capitalism, screw the customers as long as they keep paying.