Outsourcing Ultimately Benefits US Economy - Report
Diverse insourcing and outsourcing initiatives are ultimately benefiting the US economy, despite fears that jobs are being lost to oversees projects, according to research from TowerGroup. The firm estimated that in 2003, US financial services institutions imported $1bn in software application developments from offshore locations, with another $0.3bn in IT services. ‘However, all of these offshore sourcing revenues are offset considerably by US financial services exports of roughly $200bn sold annually to international markets,’ explained Virginia Garcia, Senior Analyst in the Financial Services Strategies & IT Investments practice. ‘Moreover, TowerGroup estimates that global sourcing resulted in $1.2bn in operational efficiencies last year, with an additional $0.4bn in capital freed for innovation,’ she added. The company believes that a healthy portion of that money went to US vendors and will fund the much-needed innovation to drive international business. ‘In the end, it pays to join the global village,’ said Garcia.