Outsourcing Times

October 20, 2004

Outsourcing: Is Cost Saving Worth IT Job Loss?

American consumers want the best products at the lowest prices. Therefore, it makes sense to outsource jobs offshore to cut costs. But is the loss of American IT jobs worth the cost cutting? Ronil Hira, an assistant professor of public policy for Rochester Institute of Technology, offers one opinion.

According to CIO News:

"There is no way that the cost savings [of offshore outsourcing] make up for the loss in income for those displaced workers," Hira said. "Companies are gaining from this because they get the cost savings, but they have no responsibility for those displaced workers. The displaced workers obviously lose. In the end, America loses because the cost savings for companies don't outweigh the losses for displaced workers."

Read more: Is offshore outsourcing worth the loss of IT jobs?

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October 20, 2004 in Software & IT | Permalink

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