Offshoring: The Future of Our Economy Outsourcing jobs to foreign countries or offshoring is often seen as the end of the American economy. A more accurate view of offshoring is that it forms the basis for the future of our economy. By enabling companies to contain costs, grow and access a large pool of untapped talent, offshoring essentially ensures the stability of our economy by ensuring the vitality of our businesses. To remain or become competitive in today's economy, U.S.-based companies must outsource jobs to foreign countries. The cost savings that can result from hiring employees in underdeveloped countries like India or China are astonishing. According to Agrwa and Farrell (2003), “For every dollar of spending on business services transferred overseas, U.S. companies save 58 cents, mostly in wages.” The average salary for low-level finance positions in 2006 is $58,500. (Salary Survey Report, 2006). By performing a simple calculation, we find that by hiring offshore for entry-level finance positions, US-based companies will save approximately $33,390 per employee. According to Business News journalist Jean Paul Vellotti (2006), a typical offshore IT setup includes a technical manager, two senior programmers and two junior programmers. If the salaries of these five positions are added together, they equate to approximately $100,000 per year. What makes this statement more significant is that this amount is the same as the salary of a senior programmer in the United States. In a 2005 survey conducted by the Financial Executives Research Foundation, 71% of companies that sent jobs overseas did so to save costs (Sennett, 2006). In addition to payroll savings, the US base... half of paper ......2006). Salary Survey Report, 1-14. Retrieved May 14, 2006, from the EBSCOhost database. Agrawal, V. & Farrell, D. (2003). Who wins in offshoring. McKinsey Quarterly, 36-41. Retrieved May 13, 2006, from EBSCOhost.Employee Benefit Research Institute database. (2005). Compensation costs in the private and state/local public sectors. Retrieved May 25, 2006 from the EBRI database. Lewin, A. Y. & Peeters, C. (2006). The main appeal of offshoring. Harvard Business Review, 22, 24. Retrieved May 19, 2006, from the EBSCOhost database.McGregor, J. (2006). The most innovative companies in the world. NewsWeek, 63-75.Sinnett, W. M. (2006). Global sourcing for global markets. Financial Executives, 46-48. Retrieved May 14, 2006, from the EBSCOhost database.Vellotti, J.P. (2006). Pros and cons of offshoring. Long Island Business News. Retrieved May 14, 2006, from the InfoTrac OneFile database.