Outsourcing is a hot topic in this years election. What a lot of people don’t realize is that outsourcing is GOOD for the economy. I’ve been looking for an article about this and today I found one on CNET (particularly with regards to technology). Here’s an excerpt:
“For every dollar spent on outsourcing, the U.S. economy receives $1.12 to $1.14 in return, according to estimates by international consultancy McKinsey. Even if the highest offshore labor estimates hold true–such as Forrester Research’s widely published prediction that 3.3 million service industry jobs will move to other countries in the next 15 years–that number would represent only 2 percent of total U.S. employment today, according to Gary Endelman, a lawyer at BP America.
“As economists around the world have been pointing out, outsourcing makes businesses more competitive; increases their exports and their profits; and places more investable surpluses in their hands, which can be deployed to create more jobs,” Prime Minister Vajpayee said in his speech. “The world has spent the last decade trying to make sensible economics prevail over the temptation for short-term political gains.”
Economists in the United States note that far more jobs have been cut as a result of improved productivity, a weak economy and domestic corporate restructuring than have been lost to foreign outsourcing.
“In the current hysteria about offshore outsourcing, productivity unfortunately is seen in some circles as a four-letter word,” the American Electronics Association said in a March report. “The concern about offshoring is very similar to the concerns during the late 1980s and early 1990s in the United States that Japan was going to become the dominant economic and high-technology power of the world. It didn’t happen.”"
You can read the full article here:
Offshoring
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