Outsourcing as an Engine of Growth for the United States

Abstract

Proponents of out-sourcing cite numerous benefits accruing to those organizations pursuing out-sourcing. Yet, opponents decry the practice as the primary cause of job loss in the United States. This paper will demonstrate that the critics perceptions are not supported by the actual experiences of organizations. Research has found, instead, that out-sourcing leads to the creation of more jobs (due to capital flows resulting from the beneficial impacts of out-sourcing) than are eliminated due to the process.