According to OEDC report, Outsourcing services led to an additional productivity gain of 1.9% in US during 1995-2002 Vs 1.1% productivity growth in EU
This led to an increase in average Per Capita income: US $33,271 in real PPP terms for Americans Vs $22,474 in real PPP terms in Europe
Outsourcing has helped US economy grow at an additional 0.2%
Outsourcing has led to increased tax collection – As firms improved their bottom lines, US can collect more taxes
Example: 24x7 Call center
Take the case of 24x7 Customer call center in Bangalore. The firm offers telemarketing, customer support & IT support:
Computers it uses are made by HP
Software on those computers are from Microsoft
Air Conditioners in the office are from Carrier
Bottled water is from Pepsi Co.
90% of Shareholders in 24x7 Customer call center are US citizens
US firms by increasing exports to and sales in India
Customers worldwide who pay less for services
Migration of jobs across borders only creates opportunities for more products and services to be sold around the world, leading to gains for all.
Future Jobs in US
Jobs will surely expand because the main driver of growth in our economy is our prodigious technical change
Technical change nearly always substitutes for unskilled labor, but it creates new skilled jobs, both by creating new products and processes but also because the maintenance of technology also requires skilled labor.
The Current media blitz about imported goods or services resulting in the best jobs being relocated to some variable list of countries -- first Japan and Germany, now India and China -- has never been anything more than unadulterated hogwash.