Waltham, MA, March 30, 2004, Global Insight, Inc. announced today the release of a new study, "The Impact of Offshore IT Software and Services Outsourcing on the U.S. Economy and the IT Industry," commissioned by The Information Technology Association of America (ITAA), the leading trade association for the IT industry. The Global Insight research team was led by chief economist Dr. Nariman Behravesh, who is recognized as one of the world's most accurate economic forecasters. Nobel Prize winning economist Dr. Lawrence R. Klein, the founder of WEFA and a Global Insight associate, made significant contributions to the Study.

The in-depth Study found that global sourcing of computer software and services, while displacing some IT workers, actually benefits the U.S. economy and increases the number of U.S. jobs. According to Study findings, the U.S. economy has much to gain from global sourcing and an environment of free trade, open markets and robust competition. Benefits include job creation, higher real wages, higher real GDP growth, contained inflation and expanded exports resulting in increased economic activity.

According to the Study, U.S. spending for offshore outsourcing of computer software and services is expected to grow at a compound annual rate of almost 26%, increasing from approximately $10 billion in 2003 to $31 billion in 2008. During the same period, total savings from the use of offshore resources will grow from $6.7 billion to $20.9 billion. Using offshore resources lowers costs and boosts productivity. As a result, inflation is lower, interest rates are lower, and economic activity is higher. The increased economic activity creates a wide range of new jobs, both in IT and other industries. While there are some dislocations that affect both industries and regions, the overall economy adjusts so that offshore IT outsourcing actually creates new jobs. Over 90,000 net new jobs were created in the U.S. through 2003. The number of net new jobs is projected to grow by 317,000 in 2008. The impact on U.S. jobs does vary by industry sector, with the major beneficiaries for the next five years being construction, transportation and utilities, education and health services, wholesale trade, and financial services.

"The benefits of free trade clearly provide a boost to the U.S. economy," stated Dr. Behravesh. "Using offshore resources reduces costs, dampens inflation, lowers interest rates, increases spending and creates additional jobs. The challenge is to help displaced workers transition to other productive activities," he concluded.

The Study estimates the total number of new jobs by state, by examining each state's industry employment concentration and its forecasted industrial growth. The results of the Study indicate states that are larger and more economically diverse will gain the most new jobs through sheer size such as California, Texas, Florida, New York, Illinois, Ohio, Pennsylvania and Michigan. However, the states that will lead in terms of expected growth in the number of new jobs will be Kansas, Nevada, Washington, Arizona, North Carolina, Colorado, South Carolina, Iowa and Georgia, according to the Study.

"We have long held the position that worldwide sourcing creates more jobs and higher real wages for American workers," said ITAA President Harris N. Miller. "Now we have the data that prove it. This research replaces fear with sound economic analysis, allowing for an informed approach to the global marketplace."

Note: For more information or to view the Executive Summary of "The Impact of Offshore IT Software and Services Outsourcing on the U.S. Economy and the IT Industry," go to www.globalinsight.com/ITAA. For information on obtaining the full Study, go to: https://www.itaa.org/events/registersec.cfm?EventID=1036

About Global Insight
Global Insight, Inc. (http://www.globalinsight.com/) is a privately held company formed to bring together the two most respected economic analysis, forecasting and financial information companies in the world, DRI and WEFA. Global Insight provides the most comprehensive economic coverage of countries, regions and industries available, using a unique combination of expertise, models, data and software within a common analytical framework to support planning and decision-making. Global Insight collects and delivers economic and financial information to clients and also provides a broad range of consulting capabilities. With its April 2003 acquisition of World Markets Research Centre, Global Insight also provides the world's first same-day analysis and risk assessment service covering 196 countries and 4 industries, providing insightful analysis of market conditions and key events around the world. The company has over 3,300 clients in industry, finance and government with revenues in excess of $70 million, over 600 employees and 23 offices in 12 countries covering North and South America, Europe, Africa, the Middle East and Asia.

About ITAA
The Information Technology Association of America (ITAA) (www.itaa.org) provides global public policy, business networking and national leadership to promote the continued rapid growth of the IT industry. ITAA consists of over 375 corporate members throughout the U.S., and a global network of 53 countries' IT associations. The Association plays the leading role in issues of IT industry concern including information security, taxes and finance policy, digital intellectual property protection, telecommunications competition, workforce and education, immigration, online privacy and consumer protection, government IT procurement, human resources and e commerce policy. ITAA members range from the smallest IT start-ups to industry leaders in the Internet, software, IT services, ASP, digital content, systems integration, telecommunications, and enterprise solution fields.