A new report by real estate website Researchworldwide.com claims that the hemorrhaging of U.S. jobs to global outsourcing isn’t such a bad thing for the commercial real estate industry after all. The website reports that total savings from the use of so-called "offshored" jobs will be nearly $21 billion by 2008, which translates into 6.2% of all IT software and services spending by U.S. corporations this year.
Furthermore, the benefits of outsourcing could add $124.2 billion to real U.S. GDP by 2008. Global Insights predicts that incremental economic activity will follow these many rounds of IT outsourcing, which should create 317,000 net new jobs in the U.S. Even though U.S. companies will continue to send these IT positions offshore, Global Insights projects that the IT workforce itself will increase.
This positive economic view of adding new jobs via offshore outsourcing ultimately manifests itself as potential increasing demand for commercial real estate in the medium to long term in the ‘employer countries’," says the Researchworldwide.com report.
The current leader for offshore outsourcing—that is, the country where the bulk of these jobs are going—is India. The next most popular countries for outsourcing are, in order, China, Malaysia and the Czech Republic.