November 01, 2005
US economy benefits from global outsourcing: ITAA study
In recent times, there is a growing opinion in the US regarding the detrimental effect that outsourcing has on the US economy and job situation. A recent trade report has indicated to the contrary.
According to the study by the Information Technology Association of America, conducted by Global Insight, an economic analysis, forecasting, and financial information company, global sourcing is good for the US because it resulted in a net growth in US jobs in 2005. According to the report, the number of new jobs in the US because of outsourcing might touch 337,625 by the year 2010. InformationWeek.com reports:
[Global Insight chief economist Nariman] Behravesh added that the U.S. economy benefits from global outsourcing because they help increase the U.S. Gross Domestic Product by $68.7 million in 2005. By 2010, he expects outsourcing to increase GDP by $147.4 million. For corporations, Behravesh said outsourcing helps them lower costs and improves profits, which he added are often reinvested in new products and services. Consumers benefit because outsourcing helps lower software and service costs, encouraging them to spend more.
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