The Cost of Reshoring: Key Findings
The U.S. outsourcing market was valued at $73 billion in 2024, according to data from IBISWorld.
And roughly 300,000 American jobs are outsourced each year.
A recent tweet by Laura Loomer suggests President Trump may push to block U.S. IT companies from outsourcing work.
U.S. outsourcing to India’s $250B IT sector may soon come with a 25% tax.
— DesignRush (@designrushmag) September 9, 2025
A new bill, backed by Trump-aligned voices, could penalize companies that rely on offshore IT services, reshaping the global agency model.
Why it matters for brands and agencies:
– U.S. firms must… pic.twitter.com/osnmzlm2FQ
While unconfirmed, if the plan is enacted, it could carry major consequences.
To measure the impact, DesignRush analyzed what would happen if these jobs were forced back onshore under the call to “Make Call Centers American Again.”
The findings show U.S. companies would face an additional $13.3 billion in annual payroll costs.
In its current state, outsourcing jobs to other countries costs U.S. firms around $2.17 billion per year.
If companies were to bring these jobs back stateside, total payroll costs would jump to $15.49 billion.
This means they would face salaries that are five to 20 times higher for the same roles, raising the risk of higher service prices for American consumers.
Ultimately, it’s the citizens who will shoulder the added cost in their everyday expenses.
Which Industry Would Pay the Most?
While the payroll estimate is staggering, it’s only a broad total.
The truth is that the financial strain of reshoring would vary significantly across sectors.
Industries like tech and banking/finance, which are among the most dependent on outsourcing for IT support, would face the heaviest burden.
Together, they would absorb over $6.2 billion in extra payroll costs, nearly half of the entire $13.3B reshoring bill.
For example, in 2018, JPMorgan brought part of its IT support back in-house.
The move led to higher costs and significant retraining needs, pushing the bank to expand automation soon after.
And just as industries will be affected in different ways, not all jobs are equal when it comes to wages.
U.S. workers earn five to 14 times more than offshore employees, depending on the industry.
This is the main driver behind the massive extra cost of reshoring.
How Much Would Each Role Cost Stateside?
In particular, many simple yet vital roles can cost much more on average when hiring within the U.S.
For example, receptionists in India earn as little as $1,800 a year, compared to $37,000 in the States.
Even skilled roles like IT support or sales reps cost 5–10x less offshore, explaining why outsourcing remains such a major cost-saving strategy for businesses.
Given all these factors, how can U.S. companies in high-impact sectors stay competitive?
- Identify and invest in low-cost labor markets, such as West Virginia or Mississippi.
- Explore state and federal programs that offer tax breaks or grants for job creation.
- Build regional call center hubs to ease payroll pressure.
- Support local economies to keep costs under control.
Alternatively, companies can turn to top local outsourcing agencies that ensure cultural alignment and domestic compliance.
For many brands, it's a practical middle ground between offshoring and expensive in-house teams.
How Could Reshoring Affect Business Operations?
While the payroll figures will undoubtedly dominate headlines, reshoring will be more than just another line item.
Here’s where the pressure will hit hardest:
Roles that cost $5k–$9k offshore will now cost $40k–$60k in the U.S., instantly multiplying expenses by up to 20x.
Sectors like tech and banking would see billions in new payroll costs.
This will force leaders to cut budgets elsewhere or simply pass these costs on to customers.
Companies would need to rethink staffing, training, and compliance costs, which are already streamlined in offshore hubs.
How Can U.S. Businesses Offset Reshoring Costs?
To absorb the financial and operational shock of reshoring, forward-thinking companies will need to turn to intelligent solutions.
Reduce labor dependency and streamline workflows by:
- Letting AI handle the first line of contact. AI agents can manage customer service, IT help desks, and scheduling.
- Rethinking core admin processes. AI automation agencies help optimize HR, finance, and compliance. This cuts costs, reduces errors, and improves scalability.
- Tapping into lower-cost labor markets. Opening call center hubs in states like Mississippi or West Virginia lowers wage costs and taps into incentive programs.
- Integrating a hybrid workforce. Pairing human teams with AI boosts output without bloating payroll. It offers flexibility and cost control in service-heavy roles.
With reshoring no longer just a distant possibility, companies must expand their definition of domestic strategy.
Instead of scrambling to replicate offshore models here at home, it would be wise to design new systems with automation, flexible staffing, and smart regional planning.
In other words, the future of “Make Call Centers American Again” will depend more on how U.S. companies will reimagine the work itself.
Cost Analysis (Dataset)
Industry | Est. Outsourced Jobs | Offshore Avg. Pay (USD) | U.S. Avg. Pay (USD, BLS Median) | Offshore Spend | Reshored Spend | Extra Cost |
Healthcare | 30,000 | $6,000 (Clerks, Recept.) | $42,827 | $180M | $1.28B | +$1.1B |
Government | 15,000 | $6,500 (Clerks, Tellers) | $43,630 | $97M | $654M | +$557M |
Tech (IT/BPO) | 75,000 | $5,887 (IT Support) | $61,550 | $441M | $4.62B | +$4.18B |
Manufacturing | 24,000 | $13,560 (Sales Reps) | $74,100 | $326M | $1.78B | +$1.45B |
Retail | 21,000 | $5,300 (Retail Sales) | $34,730 | $111M | $729M | +$618M |
Banking/Finance | 45,000 | $7,000 (Clerks, Tellers) | $48,650 | $315M | $2.19B | +$1.88B |
Transportation | 15,000 | $7,500 (Clerks, Agents) | $43,730 | $113M | $656M | +$543M |
HR Services | 15,000 | $8,000 (Clerks, Admin) | $43,730 | $120M | $656M | +$536M |
Other | 60,000 | $9,000 (Mixed Roles) | $48,636 (Blended Avg.) | $540M | $2.92B | +$2.38B |
Total | 300,000 | — | — | $2.24B | $15.49B | +$13.3B |
Methodology
1. Outsourced Jobs
Around 300,000 U.S. jobs are outsourced every year.
We split these jobs across industries based on IBISWorld and Innovature BPO data, which value the U.S. outsourcing market at $73B in 2024.
2. Offshore Salaries
We collected offshore pay data from trusted sources:
Job Title | Lowest Country | Avg. Annual Salary (USD) | Source(s) |
IT Support Specialist | India | $5,887 | Qubit Labs (2025);SalaryExpert India |
Financial Clerks | India | $6,000–$8,000 | |
Office / Info Clerks | Bulgaria | $13,500 | |
Insurance Agents | Malaysia | $13,000 | |
Receptionists | India | $1,800 | |
Retail Sales Workers | Philippines | $5,300 | |
Tellers (Bank) | India | $3,550 | |
Sales Reps (Wholesale/Mfg) | India | $13,560 |
3. U.S. Salaries
We used median U.S. wages from the Bureau of Labor Statistics to calculate domestic pay for the same roles.
4. Cost Calculation
We multiplied the average salary per role by the estimated number of outsourced jobs in each industry.
Then, we compared the total offshore payroll vs. the U.S. payroll.
The gap between the two is the extra $13.3-billion cost if jobs were reshored.
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