Far Eastern Economic Review: "The Next Wave of Offshoring"

The Far Eastern Economic Review, an English monthly newsmagazine published by Dow Jones in Hong Kong for the past 60 years, writes about outsourcing primarily in information technology. Among the predictions is that 60% of all U.S. software jobs could be moved oversees. The reason: it increases world wealth (including that of the U.S.) and lowers prices. "Every dollar of spending that U.S. companies transfer to India creates $1.46 in new wealth, according to McKinsey & Co. research. India keeps 33 cents of that gain, while the U.S. keeps $1.13 for every dollar spent on offshoring." "Hardware and software prices will continue to drop as more computers are built in China and more software code written in India, according to the Institute for International Economics."

Some other quotes:

U.S. Bureau of Labor Statistics: "By the end of 2005, one of every 10 jobs at U.S. information technology vendors and service providers will have moved offshore."

Craig Barrett, CEO of Intel: "I don't think most people appreciate the magnitude of the change in the world's workforce. Over the next 10 years you are going to see major, major dislocation."

Stephen Roach, chief economist at Morgan Stanley: "We're now outsourcing investment banking to Mumbai. I don't know why we would ever hire another software programmer in New York again."