Analyzing the Debate over Offshore Outsourcing in the Service Industry: Is there a Reason for Concern?

The United States has experienced an increase in the offshore outsourcing (offshoring) of jobs in the service industry. Although offshoring is common in the manufacturing industry, it only recently began in the service industry. The recent increase in the service industry has occurred because of new technology and the ability to access information from anywhere. Those who oppose offshoring believe it takes away American jobs, lowers wages, causes a decline in America’s standard of living, and any benefits from offshoring are unevenly distributed. Statistics on unemployment rates, mass layoffs, the trade deficit, GDP, and wage rates are analyzed to show that overall, offshoring in the service industry has not negatively affected the United States. Currently, offshore outsourcing in the service industry has a net benefit to society and there is no reason for concern