ITAA/Global Insight Study Finds IT Outsourcing Results in Net U.S. Job Gro

[kalian]

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=SVBIZINK4.story&STORY=/www/story/03-30-2004/0002137661&EDATE=TUE+Mar+30+2004,+01:30+PM

WALTHAM, Mass., March 30 /PRNewswire/ -- Global Insight, Inc. announced
today the release of a new study, "The Impact of Offshore IT Software and
Services Outsourcing on the U.S. Economy and the IT Industry," commissioned by
The Information Technology Association of America (ITAA), the leading trade
association for the IT industry. The Global Insight research team was led by
chief economist Dr. Nariman Behravesh, who is recognized as one of the world's
most accurate economic forecasters. Nobel Prize winning economist Dr.
Lawrence R. Klein, the founder of WEFA and a Global Insight associate, made
significant contributions to the Study.
The in-depth Study found that global sourcing of computer software and
services, while displacing some IT workers, actually benefits the U.S. economy
and increases the number of U.S. jobs. According to Study findings, the U.S.
economy has much to gain from global sourcing and an environment of free
trade, open markets and robust competition. Benefits include job creation,
higher real wages, higher real GDP growth, contained inflation and expanded
exports resulting in increased economic activity.
According to the Study, U.S. spending for offshore outsourcing of computer
software and services is expected to grow at a compound annual rate of almost
26%, increasing from approximately $10 billion in 2003 to $31 billion in 2008.
During the same period, total savings from the use of offshore resources will
grow from $6.7 billion to $20.9 billion. Using offshore resources lowers
costs and boosts productivity. As a result, inflation is lower, interest
rates are lower, and economic activity is higher. The increased economic
activity creates a wide range of new jobs, both in IT and other industries.
While there are some dislocations that affect both industries and regions, the
overall economy adjusts so that offshore IT outsourcing actually creates new
jobs. Over 90,000 net new jobs were created in the U.S. through 2003. The
number of net new jobs is projected to grow by 317,000 in 2008. The impact on
U.S. jobs does vary by industry sector, with the major beneficiaries for the
next five years being construction, transportation and utilities, education
and health services, wholesale trade, and financial services.

...more...

I would really like to know where the hell they are getting these
numbers from... :eyes:

[prodigal_green]

1. It's a pro-outsourcing organization

eom.

[rfranklin]

2. The Tooth Fairy and Santa Claus totally agree...

and the Easter Bunny says he's hiring for Easter Egg manufacturers (entails such manufacturing skills as boiling water and dipping eggs in dye solution.)

[brokensymmetry]

3. I wonder -

how much did the ITAA pay Global Insight? What was their integrity worth?

Or, is it possible that Global Insight is just a front organization, a corporate fiction to cover up the real source of the (ahem) material?

[Robert Oak]

4. Dr. Matloff blasts ITAA for false statistics

Matloff has spent the time digging into the "statistics"
ITAA puts out and refutes them.

His immediate e-letter response to this latest hogwash is reposted:

http://forum.noslaves.com/index.php?showtopic=8&st=0&#entry170

[brokensymmetry]

5. Thanks!

And welcome to DU! :hi:

[Robert Oak]

6. "Nobel Prize Winning"

Thanks. Just found this organization.

Now, the ITAA touts the economist who wrote the study
has a Nobel prize in economics....what ITAA and it's various media outlets do not report, already the numbers are being refuted by economists and IT groups at large.

I do not know about the Nobel Prize committee...
but aren't they the same ones who awarded the Nobel Prize
to the group of economists who lost billions in derivatives
due to (discovered later) faulty theory?

[Robert Oak]

7. AEA releases document exposing ITAA propaganda

http://www.aea.org/phony_out.htm

shows details on their bogus statistics