McKinsey’s Offshoring Numbers

The following paragraph from a recent McKinsey study in offshoring seems to light people’s fires on the subject more than anything I know. Cite it at your peril — I mentioned it in a recent column and I’m getting positively venomous email.

Far from being bad for the United States, offshoring creates net additional value
for the U.S. economy that did not exist before, a full 12-14 cents on every dollar
offshored. Indeed, of the full $1.45 to $1.47 of value created globally from
offshoring $1.00 of U.S. labor cost, the U.S. captures $1.12 to $1.14, while the
receiving country captures, on average, just 33 cents.