The offshore outsourcing of IT services has become increasingly important for the global IT industry and is creating new uncertainties for the IT workforce in the USA and Western Europe. It is easy to overestimate the benefits of offshore outsourcing, however, if only wage cost differentials are taken into account and the many hidden costs are ignored. The following article discusses the advantages and risks involved in the different phases of offshore projects and presents some conclusions with regard to prospects.
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*Senior Researcher, German Institute for Economic Research, Berlin, Germany.
**Research Assistant, German Institute for Economic Research, Berlin, Germany.
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Erber*, G., Sayed-Ahmed**, A. Offshore Outsourcing. Intereconomics 40, 100–112 (2005). https://doi.org/10.1007/s10272-005-0141-8
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DOI: https://doi.org/10.1007/s10272-005-0141-8