The predominant industry being affected by offshore outsourcing is the IT industry, better known as the technology industry. It is estimated that the industry is already offshore outsourcing work that is worth over $160 billion. This is a staggering number when the impact of offshore outsourcing on American jobs is taken into account.

Because offshore outsourcing is taking away from so many potential and already existing domestic jobs, there are several states that are attempting to restrict offshore outsourcing. These states include Maryland, New Jersey, Wisconsin, and several others. Alabama, for example, has passed Senate Joint Resolution 63. This resolution encourages state and local businesses and other entities to use professional services based in Alabama. Arizona has proposed a ban on state contracts with foreign call centers. Iowa has a state contract ban, and New Jersey has data and call center restrictions. Many more states have passed or have proposed legislation giving preference to in-state services and placing restrictions on offshore outsourcing.

The reasoning as to why technology jobs are the primary jobs being shipped overseas is similar to the reasoning behind offshore outsourcing in general. Over the past few years, increases in technology have been astounding. With the development of high-speed
internet, including broadband connections, the fast-paced online environment has been made increasingly available to countries who may not have had access before. Now, these foreign countries have convenient access to the same fast-paced internet as Americans do. This means they can perform many of the same technology jobs that
American workers could accomplish. However, since their countries differ in infrastructure and economy from the United States, they can generally perform these jobs more cheaply. The ease and convenience of the internet that many Silicon Valley employees of the United States worked so hard to create has actually begun to lead to the shipping of these same technology jobs overseas.  The impact of that loss is felt by the workers who depended on that type of technology for their livelihoods.

As long as the same product or service is still produced, companies that offshore outsource gain money and remain price competitive while the domestic employees find themselves without employment. As technology increases in foreign countries, foreign workers become more able to do the same job as many American workers now suffering from the job losses, except that they can perform the job more cheaply.