software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, March 24, 2006

No connection between loss of jobs and Offshore Outsourcing

There was just a survey form OEDC (Organization for Economic Co-operation and Development) about the IT job losses that is taking place more and more in many countries. Survey stated that mechanization of works has had more crash on IT job losses. It stated that there is no connection between loss of jobs and Offshore Outsourcing. The inclusive OECD survey was on the split of employment possibility affected by Offshore Development and services. An experimental exploration discovered that one in almost five jobs could be hit by the continued development of Offshore Outsourcing. It also includes those in the IT industry, financial service, accounting services, consulting, and Research and Development (R&D) services and facilities.
This analysis is on the based of detailed study of occupational data and informations for OECD countries and other business and economic figures, states that in the long term time period the benefits of overseas business dealings and the globalization of facilities and services would compensate any short-term job losses for the country. The report clearly suggests that the process of sending business deals to other overseas destination is encouraging new opportunities and not harming the jobs for any countries.

Facilities of Offshore Outsourcing

The outcome of the survey result also stated that in the time period of long run the positive advantages of services and facilities of Offshore Outsourcing compensate the costs, even though the modification process may sporadically be difficult in the short run of time period. In the initial stages it may seem like the main reason for loosing of the jobs, Offshore Development has not that much connection with that. Analyzed and economic data report by the OECD found no "systematic evidence" method that net apparent investment of services is correlated with important levels of reduction in employment as an outcome of Offshore Outsourcing.
The outcome declared that exports of business services and functions are found to have an encouraging statistical relationship with the share of employment possibility affected by Offshore Development process, proposing that increment in requirement and production have also gone up demand for these types of ICT-using services. In fact the survey result found out that IT standardization and mechanization - not Offshore Outsourcing - are more expected to be accountable for providing many jobs and services and roles redundant. The report also matches with the study of US IT industry body that stated that Offshore Outsourcing is not hitting the IT services and employments. That report also stated that the no. IT jobs are increasing because of Offshore Development process.
All these suggest that Offshore Outsourcing process is not destroying the jobs and talents of any country.