Offshoring: Is it a Win-Win Game?

2004, McKinsey Global Insitute

This study by McKinsey Global Institute, McKinsey & Company's think tank, states that offshoring will allow America to capture economic value through:

• Reduced costs - savings from reduced costs means more savings, which can be passed to consumers or to investors to reinvest.
  
• New revenues - Offshoring creates demand in destination countries for U.S. products, especially for high tech items.
  
• Repatriated earnings - Several providers serving the U.S. market are incorporated in America, which means they repatriate their earnings back into the U.S.
  
• Redeployed labor - U.S. workers who lose their jobs to offshoring will take up other jobs, which will in turn generate additional value for the economy.
  

You can download this report free of charge from the McKinsey web site at http://www.mckinsey.com/knowledge/mgi/rp/offshoring/