Article at a glance:

How France can win from offshoring

• France is relatively new to offshoring, but the trend will probably accelerate as French companies try to keep pace with foreign competitors that increasingly send service jobs to countries with low-cost labor.
• Resisting the offshoring trend would be counterproductive over the long term. Offshoring helps companies to reduce costs, thereby freeing resources for development and ultimately creating more jobs, both at home and abroad.
• France could gain from offshoring, but to do so the country must create more jobs, encourage innovation, and make the job market more flexible so that laid-off workers can find new employment quickly.
• To ease the plight of displaced workers, some of the cost savings from offshoring could finance income protection and other assistance programs.