More Jobs For All Except IT - Page 1

Mar 30, 2004

CIO Update Staff

A new study by Global Insight and the Information Technology Association of America (ITAA) found the global sourcing of computer software and services, while displacing some IT workers, actually benefits the economy and increases the number of U.S.-based jobs overall.

According to study, The Impact of Offshore IT Software and Services Outsourcing on the U.S. Economy and the IT Industry, the U.S. economy has much to gain from global sourcing and an environment of free trade, open markets and robust competition. Benefits include job creation, higher real wages, higher real GDP growth, contained inflation and expanded exports resulting in increased economic activity.

"The benefits of free trade clearly provide a boost to the US economy," stated Dr. Nariman Behravesh, an economist and one of the study's authors. "Using offshore resources reduces costs, dampens inflation, lowers interest rates, increases spending and creates additional jobs. The challenge is to help displaced workers transition to other productive activities."

The Global Insight research team was led by Chief Economist Behravesh, who is recognized as one of the world's most accurate economic forecasters. Nobel Prize winning Economist Dr. Lawrence R. Klein made significant contributions to the study.

Increased Offshoring Expected

U.S. spending for offshore outsourcing of computer software and services is expected to grow at a compound annual rate of almost 26%, increasing from approximately $10 billion in 2003 to $31 billion in 2008.

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