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Outsourcing tide is not likely to turn

As western economies trudge towards recovery this year, expectation abounds that economic activity lost to Asia might soon return home too. Such hopes will almost certainly prove shortlived.

US president Barack Obama has been the most prominent advocate for a new wave of “insourcing”, using his second inauguration address on Monday to talk up plans that might “bring new jobs and businesses to our shores”.

During his re-election campaign Mr Obama often suggested the US was poised for an industrial and manufacturing renaissance – a theme set to resurface in next month’s State of the Union address. Corporate titans have followed suit, with Jeffrey Immelt, chief executive of outsourcing pioneer General Electric, saying last year that he now viewed outsourcing as an outdated strategy.

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