Despite high-visibility setbacks and backlash in the United States, outsourcing apparently is here to stay.

      Three just-completed studies in the United States conclude U.S. companies show no inclination to halt the practice. One study concludes that worldwide sourcing of computer software and services increases the number of U.S. jobs, improves real wages for American workers, by pushing the U.S. economy to perform at a higher level.

      While India and China often are listed as the top beneficiaries of outsourcing, Mexico also stands to gain from the practice.

How U.S. gains "How U.S. gains"

      The Information Technology Association of America (ITAA), the leading trade association for the IT industry, released The Impact of Offshore IT Software and Services Outsourcing on the U.S. Economy and the IT Industry, a study demonstrating that worldwide sourcing of computer software and services increases the number of U.S. jobs, improves real wages for American workers, and by pushing the U.S. economy to perform at a higher level, has many other economic benefits.

      Global Insight, a leading economic analysis, forecasting and financial information company, was commissioned by ITAA to conduct the study. The Global Insight research team was led by Global Insight Chief Economist Dr. Nariman Behravesh, who is regularly rated as one of the world’s most accurate economic forecasters. Nobel Prize winning economist Dr. Lawrence R. Klein, the founder of Wharton Econometric Forecasting Associates (WEFA), Inc. and a Global Insight associate, also made significant contributions to the study.

      “We have long held the position that global sourcing creates more jobs and higher real wages for American workers,” said ITAA President Harris N. Miller. “Now we have the data that prove it. Far from being an economic tsunami that washes away domestic IT employment as some believe, global sourcing helps companies become more productive and competitive. The savings produced through worldwide sourcing are invested in new products and services, in new market expansion, and, most importantly, in creating new jobs and increasing real wages for American workers. This research replaces fear with sound economic analysis, allowing for...

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