February 23, 2006

The Downside of Outsourcing

Remember when outsourcing was going to destroy the domestic IT sector? Lou Dobbs had a hard-on for that line of thinking, and it was a bullet point in the Kerry/Edwards run in 2004.
Well...

    "Despite all the publicity in the United States about jobs being lost to India and China, the size of the IT employment market in the United States today is higher than it was at the height of the dot.com boom," said the report. "Information technology appears as though it will be a growth area at least for the coming decade, and the U.S. government projects that several IT occupations will be among the fastest growing occupations during this time."

    And even with greater globalization, the report argues that the lower wage scales in India and China are not pushing down pay for U.S. IT workers. Citing information from the U.S. Bureau of Labor Statistics, it said that IT workers have seen steady gains in average annual wages for different fields in the sector of between about two to five percent a year.


I'll be darned.

Economics and Markets Posted by AlexC at February 23, 2006 3:43 PM

Great Post! I don't quite get the headline; are you suggesting that there is a downside?

Posted by: jk at February 23, 2006 4:41 PM

The hardest thing about blogging is coming up with a title. Sometimes I go 180 on the title vs the post.
It's an old habit, when my old blog was syndicated on a liberal one. ;)

Posted by: AlexC at February 23, 2006 5:28 PM | What do you think? [2]