High-Tech Outsourcing: A Benefit-Cost Framework

Cameron Gordon and Alan Zimmerman

The American Economist, 2007, vol. 51, issue 1, 97-105

Abstract: Is international outsourcing “efficient†or merely a redistribution of resources from one economic sector to another? This paper looks at this question from the perspectives of: (1) economic theory, which abstracts away from institutions and towards generalized incentives; (2) management theory, which focuses more on institutional issues that economic theory tends to ignore; and (3) a combined perspective within a benefit-cost analysis framework. The paper argues that an evaluation of outsourcing's impacts requires determining how the practice affects overall size of economic output and equity across sectors and countries. A benefit-cost template is developed for considering these questions more systematically.

Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:sae:amerec:v:51:y:2007:i:1:p:97-105

DOI: 10.1177/056943450705100109

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