Outsourcing Software Jobs Overseas Essay -- Employment Work Technology

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 raise 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 ingenious human resource pool for significantly lesser pays. IT market research firm Gartner Dataquest 1 says that companies outsourcing their software jobs see lower cost foreign childbed as a key to growth in 2003 because of large pool of highly educated English speaking workers in countries like India and Philippines who get relatively low wages. As of year-end 2002, there were at least 14 mega deals worth a total of $28.4 billion compared with nine mega deals in 2001 worth a total of $15.1 billion. Companies are lured towards the savings obtained by hiring a programmer in India who would be paid $2500 per year whereas the same job would require a wage of at least $45000 in US. According to Forrester Research2, the percentage of offshore outsourcing for U.S. IT budgets took a leap from 12 percent in 2000 to 28 percent in 2003. It in any case says that around 3.3 million U.S. services jobs will move offshore during the next 15 years, led by the IT industry and also estimates that companies can save up to 50% by outsourcing abroad. Coca-Cola, for example, already outsources about 15 percent of its information technology work and plans to do even more to cut costs. The migration began in the first 1990s when some of the technology sectors heavyweights like Oracle Corp., IBM, Sun Microsystems, Cisco Systems Inc., and... ...pursue offshore outsourcing if it means U.S. jobs ? InformationWeek.com , 2003, June 6 2003, < http//www.informationweek.com/story/showArticle.jhtml?articleID=8700190&pgno=1 8 Rayen,Ranjeet Indian outsourcing unharmed by US outcr y CIOL ,2003, May 28 2003, <http//www.ciol.com/content/news/trends/103030501.asp 9,13Roberts,Paul Craig Notes for free traders Townhall.com , 2003, June 4 2003, < http//www.townhall.com/columnists/paulcraigroberts/pcr20030305.shtml 10 Mill,John Stuart Utilitarianism Utilitarianism < http//www.utilitarianism.com/mill1.htm 11 John Locke < http//www.blupete.com/Literature/Biographies/Philosophy/Locke.htm 12 THIBODEAU,PATRICK Outsourcing growth predicted, but impact on workers may be uneven IDG.Net , 2003, June 8 2003, < http//www.idg.net/ic_1273426_9735_1-5082.html