New Delhi: A McKinsey report says the American economy stands to benefit immensely from offshoring. For every dollar of spending that is offshored, offshore service providers buy an additional 5 cents worth of goods and services from the US, thereby generating more exports and revenue to the American economy, it adds.

"Providers in low-wage countries require US computers, telecommunication equipment, other hardware and software. In addition, they also procure legal, financial and marketing services from the US," the report, prepared by McKinsey Global Institute, says.

It points out that Indian imports from the US have already grown to $3.8 billion from less than $2.5 billion in 1990. In recent months, a number of states in the US saw senators introducing Bills that seek to restrict outsourcing of jobs to low-cost destinations such as India. Many American politicians blame outsourcing as the main reason for job cuts and unemployment in that country.

Nevertheless, McKinsey says a number of offshore service providers who are incorporated in the US actually repatriate their earning back, resulting in an additional revenue of 4 cents for every dollar of spending offshore.