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Is Outsourcing Really As Bad As It Is Made To Sound? A Re- Assessment And Some Perspective

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Author Info

  • Meenakshi Rishi

    (Seattle University)

  • Sweta C. Saxena

    (University of Pittsburgh)

Abstract

The debate on outsourcing of skilled jobs to India has recently picked up steam and has become a hot election-year issue. Bills put forth in almost twenty five states have provisions that seek to limit the outsourcing trend. This paper visits some issues concerning outsourcing in order to provide nuance to some of the rhetoric. In particular, we discuss the US-India outsourcing history and reassess the key questions surrounding the subject. We provide empirical evidence in order to support our main argument – that outsourcing has been going on for a while and that the risk to US job growth due to outsourcing is exaggerated. As framing the debate in strictly economic terms is difficult given that there are “real” winners and “real” losers caught in the crosstalk, the paper seeks to offer recommendations to help ease the socio-economic impact of outsourcing.

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File URL: http://128.118.178.162/eps/mac/papers/0508/0508009.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Macroeconomics with number 0508009.

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Length: 24 pages
Date of creation: 07 Aug 2005
Date of revision:
Handle: RePEc:wpa:wuwpma:0508009

Note: Type of Document - pdf; pages: 24
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Web page: http://128.118.178.162

Related research

Keywords: outsourcing; India; US; job loss;

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References

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  1. Mary Amiti & Shang-Jin Wei, 2004. "Fear of Service Outsourcing," IMF Working Papers 04/186, International Monetary Fund.
  2. Amiti, Mary & Wei, Shang-Jin, 2004. "Fear of Outsourcing: Is It Justified?," CEPR Discussion Papers 4719, C.E.P.R. Discussion Papers.
  3. Mary Amiti & Shang-Jin Wei, 2005. "Fear of service outsourcing: is it justified?," Economic Policy, CEPR & CES & MSH, vol. 20(42), pages 308-347, 04.
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Citations

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Cited by:
  1. Koskela, Erkki & König, Jan, 2009. "Can Profit Sharing Lower Flexible Outsourcing? A Note," IZA Discussion Papers 4063, Institute for the Study of Labor (IZA).
  2. Rosario Crino, 2006. "Are U.S. White-Collar Really at Risk of Service Offshoring?," KITeS Working Papers 183, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Oct 2006.
  3. Koskela, Erkki & König, Jan, 2011. "The Role of Profit Sharing in Dual Labour Markets with Flexible Outsourcing," IZA Discussion Papers 5798, Institute for the Study of Labor (IZA).
  4. Rosario Crinò, 2007. "Offshoring, Multinationals and Labor Market: A Review of the Empirical Literature," KITeS Working Papers 196, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jan 2007.
  5. Erkki Koskela & Jan König, 2009. "The Role of Profit Sharing in a Dual Labour Market with Flexible Outsourcing," CESifo Working Paper Series 2533, CESifo Group Munich.
  6. Aronsson, Thomas & Koskela, Erkki, 2009. "Outsourcing and optimal nonlinear taxation: A note," Economics Letters, Elsevier, vol. 102(2), pages 135-137, February.
  7. Erkki Koskela & Jan König, 2009. "Can Profit Sharing Lower Flexible Outsourcing? A Note," CESifo Working Paper Series 2606, CESifo Group Munich.

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