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FIGURE 3-11 Offshored services market size, in billions of dollars, 2003.

NOTE: Offshored services market size includes Business Process Outsourcing and Information Technology, Captive and Outsourced.

SOURCE: Based on Software Associations; US country commercial reports; press articles; Gartner; IDC; Country government Web sites; Ministry of Information Technology for various countries; Enterprise Ireland; NASSCOM; McKinsey Global Institute analysis. McKinsey and Company. The Emerging Global Labor Market: Part II—The Supply of Offshore Talent in Services. New York: McKinsey and Company, June 2005.

ences, mathematics, and engineering raises concern about the overall health of the science and engineering research enterprise, including that of the health sciences. Yet, these are disciplines that lead to innovation across the spectrum of modern life.49

Figure 3-9B shows that total R&D as a percentage of GDP bottomed out in the late 1970s at around 2.1%, then rebounded to about 2.6%. That rate of investment has stayed relatively constant since the early 1980s. Federal R&D as a percentage of GDP peaked in the early 1960s and has fallen since then.

49

The National Academies. Observations on the President’s Fiscal Year 2003 Federal Science and Technology Budget. Washington, DC: The National Academies Press, 2002. Pp. 14-16.



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