Implications of the social consequences of global information technology outsourcing in the USA

The transformation and movement of work opportunities is not a new phenomenon. This has been the norm in many industries, such as manufacturing, semi-conductors, clothing, etc. This is the first time, however, that so-called knowledge intensive work areas would be hit en masse, instead of low waged jobs. This has and will have a large impact on individuals, firms, and society. From a global perspective this paper addresses one overall question: Given the social consequences of outsourcing on individuals and society, is outsourcing a long-term solution for the IT industry? Drawing on different studies addressing IT outsourcing, and published in surveys, research papers, trade journals and on websites, the paper presents an analysis aimed at improving our understanding of the social consequences of global IT outsourcing at both the individual and societal level. This analysis is then used to draw conclusions about the inherent stability of outsourcing as a long-term solution for the IT industry. Given the importance of the USA in this, our analysis depends to a large extent on empirical evidence of the consequences of outsourcing in the USA.