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The small businesses could be in a better position to secure larger outsourcing contracts if they join hands and act as a single resource group under a consortium arrangement. This could be further enhanced if this approach is expanded globally - an US small business makes alliance with a company in China to perform a large outsourcing contract in USA. What really stands in the way?
Overseas outsourcing is helping to erode the economy. In the short term you will get the contract. In the long term members of the outsource firm embed sales people in the US and eventually even teh small business is cut out of the loop.
Outsource to US small businesses - Yes -
Outsource Overseas - No
I think it is not correct so long the US front end small business primes the contract. Customer always recognizes the front face. If the strategic tasks are kept with the front end company with offloading the labor intensive piece - this may not happen. Moreover if you canot defeat them join them!
Cheers