Outsourcing: A Windfall for U.S. IT Pros?


No topic has ignited the ire of U.S. IT workers (both employed and unemployed) than workforce issues like H-1B visa hires and outsourcing overall.

For all of you who think outsourcing is the American Enemy No. 1, well, buckle up.

Bob Evans at InformationWeek's Global CIO blog has the goods on a new study from economists at Harvard and Berkeley. Their study finds that when U.S. businesses go global--and consequently become more successful and competitive, they actually end up hiring American workers at higher salaries.

The U.S. boasts higher corporate tax rates than any nation except Japan. And our tax code makes it attractive to U.S. businesses to invest overseas, since they'll end up paying taxes at the lower rates of their new operation's home country. So they use that tax break to gain advantages in overseas markets--a no-brainer since, as we all know, we live in a global economy.

As the American Enterprise Institute's Kevin Hassett summarizes: "So when firms expand their operations abroad, taking advantage of the lower foreign tax rates, it helps their workers in the U.S. Higher sales abroad (surprise, surprise) are good for domestic workers." By "good," he means financially, according to his analysis of the study.

Read Evans' post for the whole rundown. Then let us know what you think.


3 Comments for "Outsourcing: A Windfall for U.S. IT Pros?"

  • Lee June 17, 2009 11:44 am

    Drop the subject. You won't change anybody's mind. All this does is make academics and journalists look out of touch.

  • Dr. Bob Hacker June 12, 2009 10:25 am

    I agree 100% on the feces involved here. What the writer fails to report is that countries, e.g. Norway, require offsets when we sell to them. In other words, they buy our missiles but we have to buy an offsetting amount of something. Thus we lose all the way around. They get the tech and we get screwed all the way there and back. They copy our IP and then compete against us. The CEOs in the U.S., being mainly bean-counters and lawyers, could care less as they deposit their $100 mil/year perks as we go down the toilet with our 201K plans!

  • David June 12, 2009 9:18 am

    This is excrement.

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