Gates warns against reliance on outsourcing

Companies should not outsource their core business functions and staff, Microsoft Chairman and Chief Software Architect Bill Gates told a group of Japan's top businessmen in a speech in Tokyo.
"If you rely too much on people in other companies and countries ... you are outsourcing your brains where you are making all the innovation," Gates said.

Innovation to drive outsourcing

Innovation not cost reduction will be the main reason successful firms outsource IT jobs over the next decade, according to analyst firm Forrester.