Information systems outsourcing
Communications of the ACM
Employment outsourcing in information systems
Communications of the ACM
The myths and realities of information technology insourcing
Communications of the ACM
Journal of Management Information Systems
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Offshore outsourcing is not a new phenomenon in the U.S. Over the last two decades outsourcing in manufacturing industry destroyed 2 million blue color jobs in the U.S. but created 43 million white color jobs in other services areas. This has raised the output in manufacturing by raising the labor productivity by 3.5 percent annually and has increased the standard of living of the American people (Bailey and Farrell, 2004). The current problem is that those white color jobs (high tech IT jobs) once insulated from foreign competition are now vulnerable to offshore outsourcing because these jobs can be performed at a fraction of the cost in low wage countries such as India and China. Due to a revolution in digital technology and reduction in telecommunication costs, jobs related to functions such as software programming and design, call center operations, accounting and payroll operations, medical record transcription, paralegal services, and software research and testing etc., can be performed at a foreign location and transferred through the internet.