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Offshore Outsourcing Is an Unavoidable Trend

As more companies transfer programming andconsolation for people who have lost their
call- center jobs offshore, the topic ofjobs. Still, moving some jobs offshore seems
offshore outsourcing is raging throughout theinevitable. There is no good alternative. All
information technology industry. I understandthe emphasis on offshore jobs is obscuring an
the frustration of workers whose jobs haveimportant trend: Information technology jobs
been removed and of customers who fail to getare changing dramatically. Though many IT
their technical-support questions answered.jobs are still out there, you won't find the
But one of the latest studies indicates thathuge demand-or the huge salaries and generous
the trend may actually be creating more jobs.options-that we saw in the dot-com era.
Given our global economy, the globalizationDuring that period, many companies had
of the IT industry is inevitable. Most big ITtrouble filling open positions, which led to
companies do much of their business overseashigher wages. Now that we're back to normal,
and naturally want to have some of theirwages have retreated too. Increased
employees in those markets. Lower wages inproductivity also plays a key role in the new
some countries are also a huge incentive toIT job scene: IT support requires fewer
move operations, especially since high-speedpeople than it once did. Windows 2000,
communication removes many of the barriers toWindows XP, and Mac OS X are far from
dealing with U.S.-based colleagues andperfect, but there's no question that they
customers. Interestingly, figures say thatare more stable than Windows 95 or 98, or Mac
rather than reducing the number of jobs inOS 8 or 9. As a result, companies need fewer
the U.S., offshoring is lowering costs forpeople to support them. (And if we can ever
everyone and actually creating jobs, thanksget spam and viruses under control, we'll
to a more efficient economy. It says thatneed even fewer support personnel.)
about 354,000 new jobs-both IT andMeanwhile, server consolidation and better
non-IT-were created in 2005 thanks todesktop management have been significant
offshore IT outsourcing, and by 2008 thetrends for a long time, resulting in the need
number will reach over 589,000. According tofor fewer IT jobs. These trends are also
a study, fewer than 5 percent of U.S. IT jobsreflected in job statistics. IT jobs won't
have moved offshore. But analysts predictdisappear altogether, but we may need fewer
that by 2010 25 percent will be in developingof them. Perhaps the biggest transformation
countries. They urge companies to proceedtaking place is in programming. The number of
carefully, as such moves could result in thecomputer science majors has dropped
loss of future talent, intellectual assets,significantly, a big concern because these
and organizational performance. Of course,are the people who would have their names on
the creation of new jobs isn't muchthe next great innovations.



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