Month: December 2015

Does outsourcing cause jobs to be lost in the host country?

The evidence on this is actually mixed – in the United States studies have shown that in general outsourcing has a neutral effect on jobs if that outsourcing is done within the country. The types of jobs that are traditionally outsourced tend to fall into the range of low skilled or single skilled activities. Here we can think of typical clerical work or generic IT support – and it is in these areas that the structure of work is changing.