Essay on Outsourcing Software Jobs Overseas

2998 Words 12 Pages
Outsourcing Software Jobs Overseas

Information Technology (IT) Outsourcing overseas in which a company hires another company abroad to take over some of its software related tasks like managing data center, handling technical support and software maintenance has become a growing trend today. American technological corporations desperate to cut costs are outsourcing jobs to the developing countries with large talented human resource pool for significantly lesser wages.

IT market research firm Gartner Dataquest 1 says that companies outsourcing their software jobs see lower cost foreign labor as a key to growth in 2003 because of large pool of highly educated English speaking workers in countries like India and Philippines who
…show more content…
resources.This acceleration in growth is contributed by corporate cost cutting, a stale U.S. economy, shrinking of the world by high quality communication systems and Internet, and rising technical capacity of overseas communities.

Well that is great - What is the problem with that?

Workers and Unions in America are worried about the expected job losses that result from outsourcing, whereas the countries on the receiving end are getting ready for a major leap in economical growth by building their tech sector. IT workers who are already suffering from shrinking wages, scarce jobs and layoffs due to the weak economy are alarmed by such a major job shift to other countries. Programmers who were receiving $130,000 per year a few years back have now either landed in a IT job which pays around $40,000 or left unemployed. IT workers who were once thought of as assets of a company are now being viewed no different than a steel plate or a plastic part in a manufacturing company which can easily be substituted by a less expensive alternative.

Why Outsource?

Many organizations believe that by outsourcing they can concentrate better on strategic core business activities rather than day-to-day mundane operations.Today's fast changing technology requires software companies to have a wide range of expertise. So by allowing the company's in-house technology talent to focus on core business areas without worrying about hundreds of technical issues

Related Documents