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Jeff Kaplan EXPERT RESPONSE FROM: Jeff Kaplan

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QUESTION POSED ON: 25 July 2003
What are your thoughts on offshore outsourcing? Do you think it helps or hurts the U.S. economy and why?

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Just like the movement of the steel and sneaker industries offshore in the 70s and 80s, the movement of the IT software and services offshore are events that can't be prevented. Offshore costs are too far below U.S. costs to be ignored. There is no question that offshore outsourcing will benefit companies that leverage this option to reduce their costs. But it will also seriously hurt U.S. employment and create new competitive challenges for some U.S. companies. Just like the steel and sneaker industries had to adopt to survive, so will the IT software and services industries.


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