Abstract

Recently, the outsourcing of Information Technology activities to offshore locations has been gaining significant momentum, with some associated backlash by the workforce in the United States. Based on their 2005 survey [6], Global Insight, a private consulting firm, estimated that U.S. companies will spend about $38.2 billion in offshore IT services by 2010, compared with about $15.2 billion in 2005, primarily because the expected cost savings will grow by $11.7 billion in the same time period. Binder writing in "Foreign Affairs" [2] states that offshoring expenditures will continue to increase dramatically, and the changes the offshoring phenomenon will bring will transform society. This paper focuses on the social impact of offshoring and the effects of the weighing of costs and benefits as a result of offshoring activities.