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The IUP Journal of Knowledge Management :
Offshoring Knowledge-worker Jobs: Boom or Burst for the US Economy?
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This takes a system dynamics perspective of the contemporary trend of "Offshoring Knowledge-worker Jobs from the USA" to gain a better and deeper understanding of the results and implications of the trend, its impact on the jobs and workforce dynamics. The results not only support the viewpoint of economists that offshoring is beneficial to the economy, but also highlight another impending phenomenon just round the corner, namely, the slow rate of growth of workforce. Net US workforce growth is slowing because 71 million baby boomers are beginning to retire. In this context, model outputs suggest that offshoring is postponing the undesirable state of US jobs outstripping the US workforce for nearly five years. Thereby, policy-makers have longer time to find effective solutions to tackle the impending shortage of workforce in decades to follow. The model suggests that offshoring could not have come at a better time for the US economy.

Often termed as `Mega-Trend', `New Wave', `An Economic Imperative', or `A Short-term Solution', offshore outsourcing has taken the global economy by storm. The mind-boggling advances in the information and Internet Technology, coupled with rapid reduction in communication costs, have opened the floodgates for a plethora of possibilities in global business practices; these have opened doors for new business alliances and outsourcing opportunities that were hitherto considered not feasible or uneconomical. The new practices include offshoring knowledge-worker jobs. Corporations that have successfully offshored knowledge-worker jobs include Microsoft, Intel, Oracle, Cisco, Texas Instruments, GE, and IBM, to name a few (Trends, 2004a, p. 36).

 
 
 

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