Job Losses due to Outsourcing

I have often expressed the view on the impact of Outsourcing on job losses has been grossly over-hyped. Looks like a recent study by American Sentinel University also arrives at the same conclusion. The majority of the job losses are due to the downtrend in the technology industry and that just happened to coincide with a sudden rise of outsourcing.

Information week covers this survey in more detail in an article titled Study: Offshoring Impact On U.S. Jobs Overblown.

 

The study, titled "Offshoring of Information-Technology Jobs: Myths and Realities," finds that IT positions requiring advanced degrees and business knowledge are growing at a pace on par with the boom years experienced in the 1990s.

Once the current economic expansion took hold, however, we found that the 2000 to 2002 job losses had little, if anything, to do with jobs moving overseas. Software engineers in particular saw a phenomenal turnaround in job fortunes, swinging from 4 percent decline to 25 percent growth.

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