Restructuring information technology: Is offshoring a concern?

Monthly Labor Review

Volumn 128, Issue 8, 2005, Pages 11-21

  Bednarzik, Robert W ^a  

^a GEORGETOWN UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 28244452595     PISSN: 00981818     EISSN: 00981818     Source Type: Journal    
DOI: None     Document Type: Review

References (51)

1. An estimated 5 million factory jobs were lost. See Griff Witte, "As Income Gap Widens, Uncertainty Spreads," The Washington Post, Sept. 20, 2004, p. A01.
2. Griff Witte, "As Income Gap Widens, Uncertainty Spreads," The Washington Post, 2004, p. A01 Ibid.
3. Measuring the Information Economy (Paris, Organization for Economic Cooperation and Development [OECD], 2002).
4. Digital Economy 2003 (Washington, DC, U.S. Department of Commerce, December 2003).
5. ITAA Quarterly Workforce Survey (Arlington, VA, Information Technology Association of America [ITAA], Dec. 18, 2002).
6. See Roger Moncarz, "Preparing for careers in information technology is a function of multiple subroutines. Which algorithm will you choose?" Occupational Outlook Quarterly (Washington, DC, fall 2002);
7. Daniel E. Hecker, "High-technology employment: a NAICS-based update," Monthly Labor Review, July 2005, pp. 57-72;
8. and William Luker, Jr. and Donald Lyons, "Employment shifts in high-technology industries, 1988-96," Monthly Labor Review, June 1997, pp. 12-25.
9. Global Insight, Inc., "The Impact of Offshore IT Software and Services Outsourcing on the U.S. Economy and the IT Industry," (Lexington, MA, March 2004).
10. Moncarz, "Preparing for careers..."
11. Moncarz, "Preparing for careers..." Ibid.
12. Global Insight, Inc., "The Impact of Offshore IT Software..."
13. E-mail correspondence with Roger Moncarz, BLS, on Sept. 15, 2004.
14. Carol Ann Meares and others, The Digital Work Force: Building Infotech Skills at the Speed of Innovation (U.S. Department of Commerce, June 1999), figure 1, p. 5.
15. Mary Amiti and Shang-Jin Wei, "Service Outsourcing, Productivity and Employment: Evidence from the US," (International Monetary Fund [IMF], First Draft, May 2004). Because their sample of 450 industries included only 5 service industries, they did not separate out an impact just on them.
16. See, for example, Jagdish Bhagwati, Arvind Panagariya, and T.N. Srinivasan, "The Muddles over Outsourcing," Journal of Economic Perspectives (forthcoming).
17. See, for example, Government Accountability Office (GAO), "International Trade: Current Government Data Provide Limited Insight into Offshoring of Services" (Washington, DC, Government Printing Office, September 2004);
18. and Global Insight, Inc., "The Impact of Offshore IT Software..."
19. Federal Reserve Bank (FRB) of Boston, "Understanding the 'Job-Loss' Recovery," Public Policy Briefs No. 04-1, June 2004.
20. "Understanding the 'Job-Loss' Recovery," Public Policy Briefs No. 04-1, 2004 Ibid.
21. "Understanding the 'Job-Loss' Recovery," Public Policy Briefs No. 04-1, 2004 Ibid.
22. "Understanding the 'Job-Loss' Recovery," Public Policy Briefs No. 04-1, 2004 Ibid.
23. The OECD, using a broader occupational-based definition of the IT sector which represented about 19 percent of total employment, reached a similar conclusion. They concluded that the number of jobs lost to offshoring was relatively small compared with general job turnover in OECD countries. This was further supported by a European Union (EU) study that concluded jobs lost due to offshoring seldom resulted in redundancies. See OECD, Potential Offshoring of ICT-Intensive Using Occupations, DSTI/ICCP/IE (2004) 19 (Paris, December 2004);
24. and EU, Outsourcing of ICT and related services in the EU, (Luxembourg, European Foundation for the Improvement of Living and Working Conditions, 2004).
25. McKinsey Consulting, "Offshoring: Is It a Win-Win Game?" (San Francisco, CA, August 2003).
26. John McCarthy, "3.3 Million U.S. Service Jobs to Go Offshore," (Forrester Research, November 11, 2002).
27. McKinsey Consulting, "Offshoring: Is It..."
28. John McCarthy, "3.3 Million U.S. Service Jobs..."
29. See, for example, Mary Amiti and Shang-Jin Wei, "Fear of Service Outsourcing: Is It Justified?" NBER Working Paper No. 10808 (Cambridge, MA, September 2004).
30. Government Accountability Office (GAO), "International Trade: Current Government Data Provide..."
31. See Mary Amiti and Shang-Jin Wei, "Service Outsourcing Productivity..."
32. Mary Amiti and Shang-Jin Wei, "Service Outsourcing Productivity..." Ibid.
33. Government Accountability Office (GAO), "International Trade: Current Government Data Provide..."
34. Estimates were determined from a survey of 100 companies specializing in business process outsourcing plus 1,800 leading IT companies in the United States and India. See John McCarthy, "Near-Term Growth of Offshoring Accelerating," Forrester Research, May 2004.
35. Global Insight Inc., "Executive Summary: The Comprehensive Impact of Offshore IT Software and Services Outsourcing on the U.S. Economy and the IT Industry," sponsored by Information Technology Association of America (ITAA), March 2004. Model forecasts the economy for 2004-08 with and without outsourcing; assumption is a 40-percent cost savings for companies using outsourcing.
36. Charles L. Schultze, "Offshoring, Import Competition and the Jobless Recovery," Policy Brief #136 (Brookings Institution, August 2004).
37. Ashok D. Bardhan and Cynthia Knoll, "The New Wave of Outsourcing, Institute of Business and Economic Research, Fisher Center for Real Estate & Urban Economics" (Berkeley, CA, University of California, 2003).
38. Ashok D. Bardhan and Cynthia Knoll, "The New Wave of Outsourcing, Institute of Business and Economic Research, Fisher Center for Real Estate & Urban Economics" 2003 Ibid.
39. Terms of trade are typically defined as the prices of exports divided by the prices of imports.
40. Robert C. Shelburne, "Trade and inequality: the role of vertical specialization and outsourcing." Paper presented to International Trade and Finance Association, San Antonio, TX, May 2004.
41. Paul Samuelson, "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, (forthcoming).
42. "Ten Myths about Jobs and Outsourcing," Economic Watch, on the Internet at http://www.heritage.org/research/features/economywatch/outsourcing. cfm, visited November 1, 2004.
43. "Samuelson Strikes Again: The Debate Over Outsourcing," Exploit the Worker, on the Internet at http://exploittheworker.com/exploit/ar-chives/ 000061.html, visited November 1, 2004.
44. Jagdish Bhagwati, Arvind Panagariya, and T.N. Srinivasan, "The Muddles over Outsourcing..."
45. Catherine L. Mann, "Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth," International Economics Policy Briefs, December 2003;
46. Bhagwati...
47. Bhagwati...
48. Robert C. Shelburne and Jorge G. Gonzalez, "The Role of Intra-Industry Trade in the Service Sector." Paper presented at the Annual Conference of the International Trade and Finance Association, Washington, DC, May 2001.
49. Bhagwati...
50. Bhagwati... Ibid.
51. Lori Kletzer, "Job Losses from Imports: Measuring the Costs" (Washington, DC, Institute for International Economics, 2001).