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  • How Outsourcing Jobs Affects the US Economy

Levine, Linda. “Offshoring(or Offshore Outsourcing) and Job Loss Among U.S. Workers.” N.p., n.d. Web. 14Sept. 2012.

The effects of offshoring and outsourcing on the US economy

Business Process Outsourcing and Its Impact on U.S Economy

Most of the Business Process Outsourcing is done by the USA and it is a well-known fact
The authors note that despite the enormity of the stakes for all Americans, a state of denial exists among policymakers and outsourcing's corporate champions about the adverse effects on the US. The Hira brothers succeed in their task of interjecting harsh reality where delusion has ruled.

Is outsourcing really bad for the US economy? - Quora

“It would probably increase efficiency, which would be good for the economy, but the impact on G.D.P. itself would probably overstate the true benefit because of the way G.D.P. is measured,” said Jon Steinsson, an economics professor at Columbia and evangelist for outsourcing.


The uneven impact of outsourcing - Business - US …

Right now, unpaid household production is not measured by gross domestic product. Shifting a lot of work that is already done but not measured into the measured sector would show a big increase in output that exaggerates how much new stuff the economy is actually producing.

By the way, some economists (including , one of this blog’s daily economists) have our standard measure of output to start including unpaid household services like cooking and cleaning for yourself or your family. If this more expansive measure of output were used instead of our current definition of G.D.P., isolating the efficiency gains that might come from greater outsourcing would be easier.

China Trade, Outsourcing and Jobs: Growing U.S

In what might be an underestimate, a University of California study concludes that 14 million white-collar jobs are vulnerable to being outsourced offshore. These are not only call-center operators, customer service and back-office jobs, but also information technology, accounting, architecture, advanced engineering design, news reporting, stock analysis, and medical and legal services. The authors note that these are the jobs of the American Dream, the jobs of upward mobility that generate the bulk of the tax revenues that fund our education, health, infrastructure, and social security systems.

Outsourcing: Affected US Economy Recession

When most people think of outsourcing, theythink of call centers and IT support. While these are a part of theoutsourcing industries, the spectrum is far more diverse. Initially,outsourcing was limited to simple service work, such as writing software codeand processing credit receipts (Levine, 5). Since its start, outsourcing hasexpanded into higher skilled jobs, including medical transcripts, paralegals,auditors, tax preparers, finance, insurance, and professional and businessservices (Levine, 5,7). Forrester Research, Inc. cited that a total of 3.4million service jobs are expected to move abroad by 2015(Levine, 6). Othersestimate that more than 14 million US jobs, 11% of the US employment in 2001,have characteristics that work well being outsourced (Levine, 6). Jensen andKletzer in their 2005 paper “Tradable Services: Understanding the Scope andImpact of Services Offshoring” estimated that of the employment in 2000, 9.4%were industries capable of offshoring. Of this 9.4 %, 13.7% were professionalservices industries and 12.4% were manufacturing industries (Levine, 7).

Globalization: Threat or Opportunity for the U.S. Economy?

Several readers have written in to ask about the macroeconomic impact of this sort of outsourcing. Hiring people to call the cable company or do the laundry creates jobs, after all, and frees up the employers to spend time on higher-paid work today and possibly to get bigger raises tomorrow. So skills are allocated more efficiently, which is probably good for both productivity and economic growth. What effect, then, might an increased propensity to outsource household production have on gross domestic product?

How does outsourcing affect the U.S. economy? - Quora

Nothink economists assume that new, better jobs are on the way for displaced Americans, but no economists can identify these jobs. The authors point out that "the track record for the re-employment of displaced US workers is abysmal: "The Department of Labor reports that more than one in three workers who are displaced remains unemployed, and many of those who are lucky enough to find jobs take major pay cuts. Many former manufacturing workers who were displaced a decade ago because of manufacturing that went offshore took training courses and found jobs in the information technology sector. They are now facing the unenviable situation of having their second career disappear overseas."