During the same period, total savings from the use of offshore resources will grow from $6.7 billion to $20.9 billion. Using offshore resources lowers costs and boosts productivity, the study concluded. As a result, inflation is lower, interest rates are lower, and economic activity is higher.
This increased economic activity creates a wide range of new jobs, both in IT and other industries. And, while there are some dislocations that affect both industries and regions, the overall economy adjusts so that offshore IT outsourcing actually creates new jobs.
According to the study, over 90,000 net new jobs were created in the U.S. through 2003. The number of net new jobs is projected to grow by 317,000 in 2008. The impact on U.S. jobs does vary by industry sector, with the major beneficiaries for the next five years being construction, transportation and utilities, education and health services, wholesale trade, and financial services.
"We have long held the position that worldwide sourcing creates more jobs and higher real wages for American workers," said ITAA President Harris Miller. "Now we have the data that prove it. This research replaces fear with sound economic analysis, allowing for an informed approach to the global marketplace."
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