US job losses in the wake of the 2008 financial crisis have triggered the debate on the benefits and disadvantages of outsourcing of jobs to Asia. As the economy of the US continues to struggle, the public debate on outsourcing leading to service sector jobs in India and manufacturing jobs in China is increasingly becoming strident. Sane voices of business leaders like Jeff Immelt of GE and others are drowned by jingoist talk. I hope that the ultra-nationalist sentiment does not get beyond the point that the political leadership in the US is forced to become more and more protectionist. Such a move will only increase bitterness amongst the emerging nations and the US, which will neither be good for the US nor the world.
It is difficult to estimate the number of jobs lost in the US due to outsourcing IT work. The number of jobs lost is complex and multifaceted. It depends on many factors, such as the type of work being outsourced, the location of the outsourcing, the size of the company, and the period being considered.
However, some estimates have been made by various organizations and studies. For instance, a study by Forrester Research in 2016 estimated that 3.4 million US jobs would be lost to automation and outsourcing by 2025. Another study by the Economic Policy Institute (EPI) in 2017 estimates that between 2000 and 2017, the US economy lost 2.4 million jobs due to offshoring, with IT jobs among the most affected.
It’s worth noting that the US job losses numbers are due to outsourcing and other factors such as automation, Artificial intelligence, and machine learning developments. Additionally, it’s also worth noting that outsourcing IT work to other countries can positively affect the US economy, such as increased efficiency, access to specialized skills, and cost savings. These benefits can then lead to growth and the creation of new jobs in other industries.
In summary, it is difficult to estimate the US job losses due to outsourcing IT work, but some estimates suggest that the number of jobs lost is significant. However, it’s important to consider the broader economic and business context when evaluating the effects of outsourcing on job losses.