Outsourcing Has Become a Controversial Term Paper

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[Wharton School] Overall the effect of this is the loss of around 400,000 U.S. IT jobs to offshore locations. However, the open labor market conditions that exist in the U.S. gives a remarkable flexibility and this is reflected in the fact that every week more than a million workers either quit or get laid off and are replaced by other personnel.

The fact that out of the total of $120 billion expended on IT services in 2003 only 1.4% was spent on outsourcing jobs projects a clear picture that there is an exaggerated concern about the negative effects of outsourcing.

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Also the total import of business services for the same period (2003) which stood at $87 billion was more than offset by the total export of business services which was marked at $134 billion. [Murray Weidenbaum]. Though at the outset it is difficult to endorse outsourcing especially when the personal feelings of people are involved, a broader economic perspective indicates that outsourcing is an inevitable part of the global economy and hence has to be supported......

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