02/13/2004: Breaking News
"Insourcing" another wrinkle in global debate
from Worcester Business Journal
WASHINGTON, DC - A total of 6.4 million American jobs supported by U.S. subsidiaries of foreign companies, with combined annual salaries of $350 billion -- represents another side of the global debate on outsourcing, the Organization for International Investment reports. "The debate about outsourcing is essentially about globalization," states OII Executive Director Todd Malan. "The media has focused on one facet of globalization: outsourcing," he notes. "But the flip side of 'outsourcing' jobs abroad is 'insourcing' jobs to the U.S. from companies based abroad." He cites Honda increasing its U.S. manufacturing jobs by 15 percent last year, Novartis relocating its worldwide R&D facility from Switzerland to Massachusetts, and Samsung investing $500 million in its Texas semiconductor plant, which will employ more than 1,200 people. U.S. subsidiaries account for more 22 percent of total U.S. exports, OII observes.