software outsourcing

A blog related to software development company and offshore software outsourcing

Monday, March 06, 2006

Offshore Outsourcing is not damaging IT jobs

In present scenario the trend is like more and more IT jobs are sent overseas for one or more reasons. Countries like India and China are the two most favorite destinations for IT jobs. Some of the main reasons for Offshore Outsourcing are lower labor rate and best qualitative services that attract most other companies from other countries to select these destinations for IT jobs. But the problem is that the developers from the countries like America and many other countries think that their future is in dark and their jobs are getting damaged by this step of their country. But the reality is that Offshore Outsourcing is not damaging IT Jobs at all. US is the country which is very heavily sending IT work to the countries like India and China as the labor rate is almost four to five times less than the local IT developers. Even a small business application is sent to India as a part of IT Outsourcing.

America is the country that prefers Software Development India the most for IT jobs and services. Several IT companies from here are involved in IT Outsourcing services to India and to China for one or the other reasons. Still the survey suggests that more IT jobs are available in the America today than it had in the past. This study also suggests that though more and more IT job are sent offshore but still no. of IT jobs are also available in the country itself and such Offshore Outsourcing has not any bad effect on country’s IT job market.

Offshore Outsourcing of IT services

Association for Computer Machinery (ACM), US IT industry body just under took the survey and surprisingly came up with the result that the annual job-loss rate attributable to Offshore Outsourcing is around 2% to 3% of the IT jobs and manpower in the country. It states that there is a much higher level of job creation in the country in IT sector. It also surveyed the US Bureau of Labor Statistics, and suggested that IT jobs are expected to be among one of the fastest growing services in the country over the next decade or so. It also states the though the country is heavily involved in IT Outsourcing from other countries, career opportunities in the IT sector would remain as strong as it was in US. An Offshore Outsourcing of IT services is not going to create any problems for IT market in the country.

Still this survey also backs other analyst and areas or industry assumptions of a 20% to 30% rise in offshoring by global corporations and forecasts the type of jobs sent offshore would move beyond the low-cost Software Development services to the higher-end computing research and development services. It indicates advisable remarks to the IT students and workers to improve their chances of long-term relationships and employment in IT services is to get a strong foundational education. They are also suggested to keep their skills and knowledge up to date with the changing environment, development of a perfect teamwork and better communication skills and one more thing to get familiar with the other cultures.

All these suggest that the IT job market in US is still the strongest one globally. Even heavy amount of Offshore Outsourcing from the country in IT sector would also not be able to damage the demand of the talents of the country.