PRESIDENT GEORGE W. BUSH Message Board

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Politics : PRESIDENT GEORGE W. BUSH

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To: Raymond Duray who wrote (451846)	9/5/2003 9:26:16 AM
From: microhoogle!	Read Replies (1) of 769667

Raymond, While offshoring has affected people in IT industry - myself included (in terms of depressed wages, people now needing to be on their toes to innovate themselves to be marketable and in many cases job losses) there appears to be a silver lining as McKinsley research suggests in this article. A new study by the McKinsey Global Institute, the think tank of the consulting firm McKinsey & Co., suggests why. When a firm ships a $60-an-hour software job to a $6-an-hour code writer in India, the most obvious benefit goes to the Indian. But, the McKinsey study reports, the U.S. economy receives at least two-thirds of the benefit from offshore outsourcing, compared with the third gained by the lower-wage countries receiving the jobs. American firms and consumers enjoy reduced costs. Larger profits can be reinvested in more innovative businesses at home. New and expanding subcontractors abroad create new markets for U.S. products. And, at least theoretically, displaced U.S. workers will find new jobs in more dynamic industries. Eventual gains however are not comforting to people who have either lost their jobs or are affected in anyway. The bad thing about this trend is that these jobs are gone forever.

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