Fear of Service Outsourcing: Is It Justified?

The paper aims to establish what are the hypes and what are the facts behind outsourcing. Results show that although service outsourcing has been steadily increasing it is still very low, and that in the United States and many other industrial countries "insourcing" is greater than outsourcing. Using the United Kingdom as a case study, we find that job growth at a sectoral level is not negatively related to service outsourcing.