Offshpre Outsourcing

Offshore Outsourcing

Offshore outsourcing may seem as if it hurts the US economy but actually causes a slow recovery. Commentators call it the jobless recovery (B. Pradhan). It doesn't seem as if the economy is recovering, and that is because it is occurring at a slow rate. Having IT workers, especially in India, is good for the US economy. Offshore outsourcing causes advantages and recovery to the US economy.

IT workers lost many jobs in the US, while jobs at other countries, mostly India, gained more openings. India, a struggling country compared to the US, has the chance to better the economy and job offers. China has also gained from offshore outsourcing. Just like how the IT jobs moved to India, manufacturing jobs moved to China. Offshore outsourcing has not become a huge issue because of the "booming economy and growth" (B. Pradhan). "The US economy operates more efficiently, achieves a higher level of output, creates more than twice the number of jobs than are displaced, and increases the average real wage" (E. Frauenheim).

India, as US's main offshore outsourcing in IT, has opportunities arising there. There are now given more challenging projects to complete in technology. Their hard work at low wages, profits US. What can be made here in the US for $60 can be made in India for $6 (M. Bray). While helping other countries to get on their feet, US increases the efficiency of the economy.

Because of IT outsourcing, US saves about $6.7 billion and climbing (E. Frauenheim). Because of the money US save and the increase in production, real GDP increased. IT outsourcing alone added $33.6 billion to real GDP, and is expected to climb another $124.2 billion in 2008 (E. Frauenheim). Economically wise, the US seems to be doing quite well. Offshore outsourcing allows costs and prices to remain low. In New Jersey, the minimum wage climbed an extra $2 within two years. Offshore