Abstract

This paper investigates the relationship between economic growth and Information Technology (IT) outsourcing. By analyzing the dynamics of IT outsourcing, the paper will further investigate various financial-related factors to assess their relationship to economic growth. With regards to IT outsourcing, prior research involving technology and outsourcing in China have provided clues to suggest a possible correlation to economic productivity. The paper will also explore past research in the area of Information and Communication Technology (ICT) expenditures, Foreign Direct Investment (FDI), and the Labor Market to determine their function in economic growth. A conceptual model was developed to illustrate the postulated relationship between IT outsourcing and economic growth. The model details a three-period lifecycle of the causal relationship between IT outsourcing and economic growth.

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