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Q: Offshore Outsourcing ( Answered 4 out of 5 stars,   0 Comments )
Subject: Offshore Outsourcing
Category: Science > Social Sciences
Asked by: mheadly-ga
List Price: $75.00
Posted: 23 Nov 2004 22:34 PST
Expires: 23 Dec 2004 22:34 PST
Question ID: 433259
I am looking for inflow and outflow investment data for the offshore
outsourcing (offshoring) market.  I do not need empoyees figures,
revenue figures, or general foreign direct investment.  I need total
investment of US firms offshoring and total foreign investment within the
US (eg Honda opening a plant in Ohio).
Subject: Re: Offshore Outsourcing
Answered By: jdb-ga on 27 Nov 2004 15:27 PST
Rated:4 out of 5 stars
Hello, I am following up on your question. 

  Here is information on total U.S. offshore outsourcing investment,
and on total foreign investment in the U.S. The GAO (Government
Accountability Office) and BEA (Bureau of Economic Analysis) are the
two most authoritative sources, and the most often quoted, for what
data are apparently available.

Government Accountability Office
(Site search for [offshore outsourcing investment] found many results,
with this 80 page report the most relevant, with many types of what
data is apparently available)
  Current Government Data Provide Limited Insight into Offshoring of Services
  (PDF document - Adobe Acrobat Reader)
    U.S. Foreign Investment Captures Other Aspects of Offshoring
    "U.S. government data on direct investment abroad by U.S. multinational
      companies producing services abroad provide information on aspects of

U.S. Department of Commerce - Bureau of Economic Analysis (BEA)
(Site search for "offshore outsourcing" led to Working Papers):
  "Offshore Outsourcing and Multinational Companies - Services Offshoring:
    What Do the Data Tell Us?" By Steven Landefeld, Director, Raymond
    Mataloni, Senior Economist, July 16, 2004
    Presented at: The Brookings Institution June 22, 2004
    [PDF File - Adobe Acrobat Reader]
    (See report for data, charts, graphs and further information and analysis)
    More Information:
    International Economic Accounts

"BEA?s multinational data provide no direct data on gains and losses
from international trade and investment. Data do provide useful
background that can help analysts to answer questions related to
offshore outsourcing and other issues." p. 2

"Operations of U.S. multinationals remain concentrated in the United
States. U.S. multinationals? U.S. operations have consistently
accounted for about three-fourths of their worldwide output,
investment, and employment. While U.S. shares remain high, there has
been some increase in foreign shares." p. 3

"U.S. MNCs appear to be increasing outsourcing somewhat, but little
evidence that it is foreign outsourcing. Increasing purchases of
intermediate goods and services as a share of sales, 1977-2001?But
U.S. parents? imports of goods as a share of sales have not seen a
marked increase and have been decreasing since 1998." p. 16

"If we add in foreign-owned MNCs in the United States net trade to
that of U.S. MNCs, they account for 69% of exports of goods and
services and for 56% of imports. Foreign-owned MNCs in the United
States account for 6 percent of GDP and for 5 percent of employment."
p. 21

National Association for Business Economics
2004 Washington Economic Policy Conference
Session 17: Economic Impact of Offshore Outsourcing
Session Presentations - papers, slides

Wall Street Journal Online
CareerJournal | U.S. Imports More Jobs Than It Sends Overseas

"The value of U.S. exports of legal work, computer programming,
telecommunications, banking, engineering, management consulting and
other private services jumped to $131.01 billion in 2003, up $8.42
billion from the previous year, the Commerce Department reported March

Imports of such private services -- a category that encompasses U.S.
outsourcing of call centers and data entry to developing nations,
among other things -- hit $77.38 billion for the year, up $7.94
billion from 2002. Measuring imports against exports, the U.S. posted
a $53.64 billion surplus last year in trade in private services with
the rest of the world.

...Despite the developments in services trade, the current-account
deficit, the most inclusive measure of the U.S. trade gap, hit another
record in 2003, reaching $541.8 billion, or 4.9% of the gross domestic
product, up from $480.9 billion in 2002, or 4.6% of GDP. The increase
came even though the deficit for the final three months of year
narrowed to $127.5 billion, from $135.3 billion in the third quarter.

...foreign direct investment swelled to $81.98 billion in 2003, from
$39.63 billion in 2002, the government said."

Foreign direct investment in the U.S.
Foreign Direct Investment in the U.S.: Country and Industry Detail for
Capital Inflows
Data are available for: 1994  1995  1996  1997  1998  1999 2000 2001
2002 2003  2004
[Millions of dollars; not seasonally adjusted; outflows(-)]
2003                             Year    1st Q   2nd Q   3rd Q   4th Q
All countries, all industries    29,772  29,635  -1,191  -4,145  5,473
2004                                     1st Q   2nd Q (proj)      
All countries, all industries            7,391   31,849              

McKinsey & Company - MGI - Research & Publications - Offshoring

Offshoring Digest - Offshore Outsourcing Bulletin

I hope these are useful. Please let me know if I can be of further
assistance. jdb-ga

Clarification of Answer by jdb-ga on 27 Nov 2004 15:48 PST
P.S.  In business article databases, I also find these article
citations, using Keyword searches for [offshore outsourcing
investment] and variations.

Offshore Outsourcing--Much Ado about What? 
Kirkegaard, Jacob F 
Institute for International Econ, Washington, DC 
CESifo Forum, vol. 5, no. 2, Summer 2004, pp. 22-29 

Offshoring in the Service Sector: Economic Impact and Policy Issues 
Garner, C Alan 
Federal Reserve Bank of Kansas City Publisher's URL 
Federal Reserve Bank of Kansas City Economic Review, vol. 89, no. 3,
3rd Quarter 2004, pp. 5-37

mheadly-ga rated this answer:4 out of 5 stars
Big help ... thank you so much.

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