Economist: Offshore IT Outsourcing Should Boost U.S. Economy

Deloitte Consulting’s Carl Steidtmann says shipping IT work overseas will ultimately lead to more higher-paying jobs in the United States.

Politicians and labor leaders looking to block the export of IT jobs to low-wage countries such as India are “the last surviving members of the flat earth society,” says the chief economist of a Big Five consulting firm that offers offshore outsourcing services.
In a new position paper that’s drawing fire from labor activists, Deloitte Consulting’s Carl Steidtmann argues that U.S. companies that ship IT work to India and other emerging countries will be more competitive, grow faster, and have more money to invest in research and development. All of this, Steidtmann says, will ultimately lead to more, higher-paying jobs in the United States. “Restrictive employment laws in Europe go a long way towards explaining why Europe consistently runs a higher rate of unemployment when contrasted with the U.S. or Britain,” Steidtmann says.

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