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Economics of Offshore IT Outsourcing: An International Trade Perspective
Computer Management and Information Systems, Southern Illinois University at Edwardsville, Edwardsville, USA
Computer Management and Information Systems, Southern Illinois University at Edwardsville, Edwardsville, USA
- 1 Computer Management and Information Systems, Southern Illinois University at Edwardsville, Edwardsville, USA
- 2 Computer Management and Information Systems, Southern Illinois University at Edwardsville, Edwardsville, USA
Technology and Investment·Volume 04 (2013)·Pages 269–273·Published 30 October 2013·DOI10.4236/ti.2013.44032
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Abstract
In recent times, offshore outsourcing of Information Technology (IT) products and services, including software development and maintenance activities, has been an issue of much controversy in the United States, with popular sentiment being against outsourcing in the mass media. Is offshore outsourcing really bad for the US economy? If yes, why did so many US companies, including IT companies, start outsourcing to begin with and still continue to do so? For that matter, why doesn’t the federal government simply ban it as a national policy? To provide some possible answers to these questions, this paper examines the issue of offshore outsourcing from the perspectives of international trade theory and the unique cost characteristics of “information goods”.
KeywordsTechnology EconomicsEconomics of Offshore OutsourcingInternational Trade TheoryInformation EconomicsPosition Paper
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