The Information Technology Association of America is pointing to a study that says global outsourcing of US software and IT services benefits the domestic economy--improving wages, encouraging investment and spending, and increases the number of jobs.
This is the first time I've been compelled to write two blogs in one day. Harris Miller, president of the ITAA says that global sourcing is good for the U.S. and that, "It's still an issue that confuses a lot of people, leads to a lot of hyperbole." Okay, here's more hyperbole.
Nariman Behravesh, Global Insight chief economist admits that outsourcing results in job losses and is "difficult" on those displaced, yet attributes three quarters of the loss of jobs over a 2.5-year period to the telecom and dot-com busts. He goes on to say the U.S. economy benefits because outsourcing increases the GDP--saying it increased GDP by $68.7 million in 2005. Better not buy that new car (or anything else) since he's expecting outsourcing to increase GDP by $147.4 million in 2010.
I invite you to comment on this. Please read the original news item Outsourcing helps, not hurts U.S. economy and come to the Forum page. Maybe it's just me, but this item just seemed outrageous to me. What about you?