Offshore outsourcing helps U.S. economy

[Renew Deal]

Study predicts outsourcing will result in creation of twice as many jobs as are lost

By Grant Gross, IDG News Service March 30, 2004

The outsourcing of U.S. IT jobs to foreign workers is good for the U.S. economy and will result in the creation of twice as many jobs as are displaced, according to a study released Tuesday by the Information Technology Association of America (ITAA).

Offshore outsourcing, which the study calls "global sourcing," created 90,000 more jobs in 2003 than it sent outside of the U.S., according to a study conducted by economic analysis firm Global Insight Inc. Offshore sourcing lowers costs to U.S. companies, allowing them to spend money on new U.S. workers, plus it increases the efficiency of the U.S. economy and results in higher wages and increased exports, said the study.

"The use of offshore resources lowers costs, frees domestic resources to pursue other productive ends, yields high quality software and services, and increases labor productivity among end-users," said the executive summary of the study. "These benefits flow through to lower prices, lower interest rates, and higher spending throughout the economy."

The study estimates that 104,000 U.S. software and services jobs were moved overseas in 2003, but 90,000 more jobs were created as a result of the cost savings associated with offshore outsourcing. The study estimates that in 2008, 317,000 new U.S. jobs will be created as a result from the savings and efficiencies created by offshore outsourcing.
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http://www.infoworld.com/article/04/03/30/HNoutsourcinghelps_1.html

[TheFarseer]

1. if the argument is

people doing the work in India need software and computers made by people back here, then that is so retarded I don't even need to point out why it is retarded. If it is that money freed up from laying people off will be used to hire even more people then, huh?!?!?!?!?!?!?!

[wildmanj]

2. outsourcing

and what century is all this wonderful stuff to be

[punpirate]

3. Be mindful of the source....

The ITAA is the electronic manufacturers' lobby in Congress, and they are as rabid a bunch of laissez-faire crony capitalists as the Bushies.

[Pillowbiter]

4. yeah

ok, so that's 90,000 more jobs as fast food servers, I mean food manufacturers, for Americans.

Even if these 90,000 jobs were factual and in the IT industry, we are still loosing 14,000 jobs than from when we started. Keep it up and we will still go broke.

PB