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World Economic Forum 2004 - Offshoring

The McKinsey Global Institute’s perspective on offshoring is that the practice brings greater benefits than losses to the U.S. Reduced costs, new revenues, repatriated earnings, and new job opportunities all point to the long-term economic benefits of offshoring.

Jobs Onshore and Offshore
The 34th annual meeting of the World Economic Forum was an opportunity for McKinsey to offer perspectives and insights to an international audience. We also listened to, and answered, the top-level concerns of global political and business leaders, particularly around the hot button issue of offshoring and its effect on jobs.
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Perspective: Offshoring: Is it a Win-Win Game?
The business practice of offshoring promises large rewards for companies and the benefits of jobs created for destination countries is well documented. But MGI argues that important and tangible benefits go both ways.
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Presentation: Offshoring's Opportunities and Impact
The presentation, based on the McKinsey Global Institute's perspective, "Offshoring: Is it a Win-Win Game?", details the substantial positive economic benefits to the U.S. economy from offshoring as well as its impact on U.S. jobs. The slideshow also proposes ways to mitigate the impact for workers who are disproportionately hit.
Launch Slideshow
Offshoring: The Critical Debate
Diana Farrell, director of the McKinsey Global Institute, answers nine questions critical to the offshoring debate, from the benefits of offshoring to its real impact on the U.S. job market.
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Who Wins in Offshoring
McKinsey Quarterly, 2003 Number 4 Global directions
By moving service industry work to countries with lower labor costs, U.S. companies can focus on creating higher-value jobs.
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New Horizons: Multinational Company Investment in Developing Economies
A new report suggests that both multinational companies and developing economies could find enormous benefits through foreign direct investment. But global expansion has its pitfalls as well as its opportunities, and CEOs as well as policy leaders need to understand them both.
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WEF 2004 Feature
Introduction
Offshoring
 
Seminar Summary
China
Risk, Control, and Performance
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