The Effect of Offshoring & Outsourcing on the US Economy

Running head : OUTSOURCING AND OFFSHORING IN THE US

The effects of offshoring and outsourcing on the US economy

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Date :Negative effects of outsourcing and offshoring on the US economy

Offshoring is the contracting of jobs and peripheral business processes to Foreign Service providers who may either be affiliated or not to the hiring organization . Only international job transfers are undertaken with offshoring . Outsourcing involves the transfer of jobs and business procedures to external firms regardless of the location of such providers . Jobs may be

relocated within and between countries in outsourcing . Offshore outsourcing only encompasses relocation of business procedures and jobs to international and foreign firms

Research by Forrester has it that 400 , 000 American jobs had gone abroad by 2003 with this figure projected to reach 3 .3 million by 2015 with 136 billion wage value . It was also estimated that 18 .1 of all jobs in the United States were affected by offshoring in 2003 . The United States IT expenditure through outsourcing increased from 12 in 2000 to 28 in 2003 according to Forrester Research statistics (Hira , 2005 ,

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Engaging foreigner employees decimates hundreds of thousands of both skilled and semi-skilled Americans ' jobs . Three million manufacturing vacancies were shed between 1993 and 2003 . Employees holding high-tech positions lost 560 ,000 jobs between 2001 and 2003 . There has been an 8 decline in the number of IT personnel as from 2000 . The manufacturing sector in the US employs 14 .5 million people with output...