Economics, Econometrics and Finance
8 years ago

IT Outsourcing Boosts Employment Growth in Service Sector, Study Finds.

SSRN Electronic Journal
IT Outsourcing and Employment Growth at the Firm Level
Jörg Ohnemus

Paper Summary

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Outsourcing IT services can lead to job losses in the short term, but in the medium term, it can actually help firms grow their workforce. A study looked at German companies from 2003 to 2006 and found that IT outsourcing can increase employment growth, especially for service sector firms. Manufacturing firms didn't see the same positive impact.