IT Outsourcing India

Jobs most at risk for offshore outsourcing are computer programming, development

As many as 8% of IT workers have been displaced by offshore outsourcing, either through job loss or an involuntary transfer to a new job by their employer, which is twice the rate of workers in other occupations, according to a study based on data collected from some 10,000 people, which may be the largest survey of its kind.

The survey, conducted by researchers at the New York University Stern School of Business and the Wharton School of the University of Pennsylvania, also backs up the long-standing view that IT employees in purely technical jobs — computer programmers and software developers who have little customer interaction — are at the most risk from offshore outsourcing.

The broad conclusions are unlikely to surprise many high-tech workers, but what may make this offshore outsourcing study unique is its breadth: some 6,700 workers across a variety of occupations and more than 3,000 hiring managers and human resources professionals were surveyed.

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Tags: Outsource Medical Billing | Medical Billing Services | Medical Coding | Medical Transcription | Medical Transcription Services | CAD Drafting | CAD Design | CAD 3D Modeling | CAD Engineering | CAD Rendering | AutoCAD Drawing

New Delhi/Chennai, Aug. 29 Stung by the apparent anti-outsourcing overtone of Senator Barack Obama’s acceptance speech where the Democrats’ Presidential nominee pledged to halt tax sops to companies that ship jobs outside the US, the Indian IT industry on Friday said that globalisation of services was “irreversible” and argued that outsourcing had enabled US firms to stay competitive.

While industry captains reacted with caution trying to decipher the underlying implications, some sought to play down the reference to outsourcing terming it as an “election rhetoric.”

“Most of the tech companies have large number of open jobs today that are not being filled due to lack of technical resources. Moreover, US companies have realised that outsourcing improves competitiveness….US companies have to decide what is the most effective model to do business,” Nasscom President, Mr Som Mittal, told Business Line.

He pointed out that the problems were more glaring in manufacturing sector than in IT. “The US is actually trying to ramp up its science, technology, engineering and math (STEM) capabilities and so I do not think the Senator was referring to IT industry in particular,” he added.

Senator Obama, in his address to the Democratic National Convention in Denver, had said that unlike his Republican rival Mr John McCain, he would stop giving tax breaks to corporations that ship jobs overseas, and will start giving them to companies that create good jobs in America.

When contacted, Mr Phaneesh Murthy, CEO, iGate Corporation, quipped, “I don’t know of a single company that gets tax breaks for sending jobs overseas.”

Mr Shailesh Shah, Chief Strategy Officer, Satyam Computer Services, pointed out that it was difficult to attempt to stem the flow of jobs or act on tax cuts, as it would require Congressional and Senate approval.

The Senator’s comments assume significance as India’s software and services exports stood at about $40 billion during the financial year 2008, a growth of 29 per cent, with US as its largest market.

Source : http://www.thehindubusinessline.com/

Tags: BPO Services | Outsource Medical Billing | Medical Billing Services | Medical Coding | Medical Transcription | Medical Transcription Services | CAD Drafting | CAD Design | CAD 3D Modeling | CAD Engineering | CAD Rendering | AutoCAD Drawing

Today, Americans agree that the economy is their principal concern. But no one wants to mention the most damaging effect to the economy — the outsourcing of jobs; the outsourcing of production; the outsourcing of technology; the outsourcing of research; the outsourcing of investments; the outsourcing of the economy. We can’t get the presidential candidates to pronounce the word "outsourcing." And the free press is worse. David Leonhardt, in a New York Times Magazine article, faults Obama for not telling "… an effective story about the economy during the campaign." Nor does Leonhardt. His article, entitled "Obamanomics," discusses every effect to the economy but the outsourcing of the economy.

Congress has become accustomed to Corporate America taking care of the economy. Henry Ford developed the most important part of the economy, the middle class, by doubling the minimum wage and instituting health care and retirement benefits. And Ford and other business foundations developed the communities. Enforcement of our trade laws was left to hearings before administrative bodies and Congress allowed treble damages to be awarded to a business that succeeded in enforcing our trade laws. Congress doesn’t regulate outsourcing because the economists and business leadership keep telling us the economy may need a little stimulation but it is fundamentally strong. And now, Congress is fearful of stopping outsourcing because Corporate America that contributes to campaigns constantly admonishes "free trade," "protectionism."

After World War II, the strategy in the Cold War was to defeat communism with capitalism. We instituted the Marshall Plan and entered into free trade agreements to open markets, yielding entry into our market. But Japan refused to open its market and set about taking over in international trade with an assault for market share. Japan sold its export at cost or below cost, making up the profit in its closed domestic market. It directed this global assault by financing production with the Ministry of Finance and selecting aim in trade with the Ministry of International Trade and Industry.

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Jobs most at risk for offshore outsourcing are computer programming, development

As many as 8% of IT workers have been displaced by offshore outsourcing, either through job loss or an involuntary transfer to a new job by their employer, which is twice the rate of workers in other occupations, according to a study based on data collected from some 10,000 people, which may be the largest survey of its kind.

The survey, conducted by researchers at the New York University Stern School of Business and the Wharton School of the University of Pennsylvania, also backs up the long-standing view that IT employees in purely technical jobs — computer programmers and software developers who have little customer interaction — are at the most risk from offshore outsourcing.

The broad conclusions are unlikely to surprise many high-tech workers, but what may make this offshore outsourcing study unique is its breadth: some 6,700 workers across a variety of occupations and more than 3,000 hiring managers and human resources professionals were surveyed.

There has been a dearth of data about the impact of offshore outsourcing on U.S. workers, and its authors, Prasanna Tambe of the Stern School and Lorin Hitt of Wharton, said their work is the first to pin down offshore outsourcing’s impact by occupation.

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