Outsourcing Helps U.S. Economy

The practice added a net 257,042 U.S. jobs this year, according to the study, in stark contrast with the reports over the past few years that criticize global outsourcing as detrimental to the economy.

By Spencer Chin
EE Times

MANHASSET, N.Y. — Global outsourcing of U.S software and IT services has benefitted the domestic economy by improving wages, encouraging investment and spending, and ultimately by increasing the number of jobs, according to a study by the Information Technology Association of America.

The ITAA study, conducted by Global Insight, an economic analysis, forecasting, and financial information company, painted a positive picture of global outsourcing of U.S. technology jobs—a stark contrast to a number of reports over the past few years which criticize global outsourcing as detrimental to the economy.
“Global sourcing not the end of U.S. IT industry—it is good for the U.S.,” said Harris Miller, president of ITAA, during a conference call and webcast announcing the study’s findings Monday (Oct. 31). “It is still an issue that confuses a lot of people, leads to a lot of hyperbole.”