Exploding the Myths of Outsourcing

Policy analysts from the McKinsey Global Institute provide perspective on the long-term economic impact of performing business services offshore. Research demonstrates sizable benefits to the United States from outsourcing through corporate savings, additional exports, repatriated profits, greater productivity and new jobs.

The loss of some domestic jobs “doesn’t weaken the case for free trade,” say the two authors. “By raising productivity, offshoring enables companies to invest more in the next-generation technologies and business ideas that create new jobs.”

The challenge, says this 2004 report from a think tank affiliated with the McKinsey & Company consulting firm, is how to make workplace turnover less painful and how to share more of the wealth and higher living standards being created.

Length: 6 pages
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