Obama touts desire to keep tech jobs in the US

Though he points to offshore outsourcing, his plan needs specifics

"First, there are many cases when a worker or even employer doesn't realize that they lost a job or a project to an offshore outsourcing firm," said Hira. "Second, it (the study) doesn't count the number of jobs that are created offshore in lieu of being created here. Before offshore outsourcing, those job opportunities would have been here."

Among other issues Hira raised is the effect of offshoring on wage suppression in the US, as well as the impact of H-1B and L-1 visas.

Advocates of offshore outsourcing, which include the titans of the tech industry, have argued that it creates jobs at US firms. That argument is typically raised as a lobbying point in getting US Congress to raise the H-1B cap, now set at 85,000. That total includes 20,000 for foreigners who have earned advanced degrees at US institutions.

Obama has supported raising the H-1B cap, as has Senator John McCain, the presumptive Republican presidential nominee. Opponents of the H-1B visa program cite its heavy use by offshore firms in arguing that it facilitates the offshoring of US jobs.

Firms in India, in particular, aren't just competing on low cost but on the increasing quality of their services, said Stephanie Moore, an analyst at Forrester Research. The cost of doing work in India is increasing, but users are gaining through the better efficiencies these firms offer, which can deliver savings in their own right.

Virendra Singh, a senior economist at Moody's Economy.com, said the cost savings overseas is too great. "In case of labor-intensive industries like programming, help desks, call centers..., the labor cost differential between the US and countries like China, India, Philippines and other developing countries is too large to make any difference."

Singh also said the computer and systems programming "visa regime in the US is too restrictive -- so companies will go wherever talent is available."

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