Outsourcing can be beneficial to the U.S. economy because it may allow U.S. firms to produce their products at a lower cost and increase their profits (which increases income earned by the U.S. owners of those firms). It also allows U.S. customers to purchase products and services at a lower cost.
However, outsourcing eliminates some jobs in the United States, which reduces or eliminates income for people whose job was outsourced. The overall effect on the U.S. economy is based on a comparison of these two forces. It is possible to make arguments for either side. Also, the effects will vary depending on the location. For example, outsourcing may be more likely in a high-wage city in the United States where firms provide services that can be handled by phone or by electronic interaction. These jobs are easier to outsource than some other jobs.