Outsourcing

IT outsourcing losses for US are wildly overblown according to new study


Okay, I have yet another piece of research that I want to blog about -- I promise it will be the last one (at least for this week). An extensive study conducted by the Association for Computing Machinery (and reported in the New York Times) found that the perception of large numbers of IT jobs being outsourced to low-wage spots like India and China has been grossly exaggerated. The study reported the following:

  • Only 2 to 3 percent of US IT jobs would be outsourced annually over the next decade
  • More new jobs will be created in the US than the ones that will be lost
  • The number of people working in IT is higher today than it was at the high water mark before the dot com bubble burst

However, on a darker note, the study also found that the perception that many of the IT jobs in the US are heading offshore is potentially hurting the US IT job market because that perception is helping to fuel the declining numbers of students entering computer fields at US colleges. If that trend doesn't change then US companies could be forced to look overseas for technology workers. That would make the now popular outsourcing myth a self-fulfilling prophecy.

About

Jason Hiner is the Global Editor in Chief of TechRepublic and Global Long Form Editor of ZDNet. He is an award-winning journalist who writes about the people, products, and ideas that are revolutionizing the ways we live and work in the 21st century.