Benefits for US Economy

Filed in archive Outsourcing News on March 23, 2004

According to a study in The McKinsey Quarterly as quoted in Intranet Journal, offshore outsourcing has at least four advantages for the U.S. economy.



1. Cost savings, which create value in the U.S. economy
2. New revenues, from Indian outsourcing firms buying new equipment from American companies, for example
3. Repatriated earnings, because many Indian outsourcing firms are U.S. companies that repatriate earnings
4. Redeployed labor, where the money saved creates new jobs, which happened in the 20 years after U.S manufacturing jobs fled the country