Wednesday, December 05, 2007

What About Outsourcing TO The US: INSOURCING

The International Organization for International Investment (OFII) recently released the “Insourcing 50” list of the 50 largest U.S.-based subsidiaries of foreign-headquartered companies. Topping the list are BP Global (UK), Royal Dutch Shell (Netherlands), Toyota (Japan), HSBC (UK), and Honda (Japan).

According to the OFII, "This list demonstrates the extensive business activity generated by foreign-owned businesses that insource into the United States. Revenue generated by these businesses is an indication of investment in infrastructure, jobs and markets in the United States."

U.S. subsidiaries of foreign companies employ 5.1 million Americans, with a total annual payroll of $336 billion, at an average compensation of $66,000, according to the OFII's
Insourcing Statistics.

Bottom Line: We hear a lot about U.S. companies outsourcing jobs overseas, but we haven't heard much about the outsourcing of 5.1 million jobs TO the U.S. from foreign companies headquartered outside the U.S. Outsourcing, like trade, works both ways.

6 Comments:

At 12/05/2007 9:05 AM, Anonymous Ry said...

You need more readers. I love the blog and the optimistic feeling that I get after reading each post. Thanks!

 
At 12/05/2007 11:42 AM, Anonymous Marko said...

Does anyone know the total number of jobs "outsourced" over this same period of time? I know that when I last saw the number it was suprisingly low, given the hype. Thanks for point out insourcing, no one ever mentions that. If this ever made the news though, it would be some story about how foreign companies are taking over our economy!

I have been saying that we have a choice: outsource jobs or insource labor - apparently there are more alternatives than that!

 
At 12/05/2007 7:25 PM, Blogger juandos said...

Hey marko, do you have any idea how to actually define "outsourced jobs" in black and white terms?

I'm not even remotely making light of your comment, I'm just trying to figure out if there is some sane way to get some idea on the numbers outbound and inbound...

 
At 12/06/2007 1:05 AM, Blogger vulcanhammer said...

Yup, this blog rocks:)

 
At 12/06/2007 7:48 AM, Blogger easymoney said...

As a side note, it is interesting that UAW leaders in Michigan have said that the big three have lost more jobs to productivity gains than to outsourcing.

 
At 12/06/2007 11:37 AM, Anonymous Marko said...

Juandos, you did notice the scare quotes I put around the term, right? I have no idea how to calculate what is basically a propaganda term, do you?

 

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