Editor's page.

• Author: Marshall, Jeffrey
• Position: Business process outsourcing

The uproar over "offshoring" a few years ago has calmed considerably, but the fact remains that many outsourced activities continue to go overseas; the logic is just too compelling. Business process outsourcing (BPO) is no exception. In our cover story, we look at the market and its growth, get expert opinion on its linkage to technology and its future and profile several BPO initiatives in countries like India and Costa Rica.

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Just how badly are U.S. capital markets being hamstrung by over-regulation and the American propensity for litigation? A lot of people, including Treasury Secretary Henry Paulson, are trying to sort that out. Writer Glenn Alan Cheney reports on recent efforts to better understand the perception-versus-reality assessment of the regulatory burden, and examines a number of commissions and groups formed to study U.S. competitiveness.

The $20 billion initiative on climate change launched in March by Bank of America Corp. signals a new level of environmental-related commitment on the part of major commercial banks. Others have been trumpeting their own messages and initiatives. It's all part of an effort by banks to get out front on the issue with consumers and other customers and help build and support green technologies and programs--clearly, an evolving role for the financial services industry.

Derivatives remain a thorny issue for companies, and their importance continues to mount as exchange-traded derivative volume zooms upward. Progressive Insurance Co. Treasurer Tom King traces the evolving showdown with standard-setters and looks back to earlier confrontations between preparers and the accounting bodies, battles over topics like foreign currency accounting, pension accounting (still an issue today) and the valuation of financial securities.

There's a vital distinction between a private company and a public one...