Outsourcing and Offshoring of IT to India :: Workforce Work Jobs Globalization

Outsourcing and Offshoring of IT to India Introduction One of the hottest trends today for big corporations is outsourcing and offshoring. Outsourcing simply means a company based in one nation will make from other nations in order to more efficient accomplish its goals. It makes sniff out on the part of the corporation, why pay a programmer in the US $80,000 a year when they can pay a programmer in India less than 1/10th of that salary, and make him a genuinely happy man. This because even when he is earning 1/10th of the US salary, he is unruffled earning more money than he ever hoped to get in that industry in India. It seems like a win-win situation1, still there is still a loser The growing unemployed population of the US. As more jobs go overseas, more US citizens be finding themselves becoming obsolete. juvenile History of IT in the US Between 1987 and 1997 imports used in US manufacturing rose from 10.5% to 16.2%2 and in High Technology rose from 26% to 38%. The US has a long history of outsourcing blue-collar jobs, including those that are intermediate steps within business processes in many industrial sectors. Manufacturings outsourcing success can be attributed to the lower cost structures ensnare in many East Asian countries such as mainland China, Taiwan, southmost Korea, and Malaysia and others2. These countries not only provide a lower cost structure, but also have a highly educated work extort and business friendly environment. Outsourcing of blue-collar jobs has increased the demand of unobjectionable-collar jobs in the US. The focus on white-collar jobs by US firms has pushed US profitableness upwards. The outsourcing trend continues to eat up the value chain from blue-collar jobs to white collar jobs3. The software industry is experiencing an outsourcing trend to countries such as China and most significantly to India. The proliferation of the net profit has opened easier access to information and collabora tive environments. Previously communication costs and access to mind power was limited. The Internet made communication costs virtually free and collaboration with groups virtually the makes software engineering and collaboration tasks easier. In additional, liberalization of free markets crosswise international lines has made it easier for companies to set up and outsource engineering tasks passim the world. Business-process and software outsourcing rely on cheaper cost structure as nominate in East Asia with manufacturing4.