February 27, 2006 || New study:
Offshoring is Here to Stay
A new study revealed globalization of software is here to stay and policymakers, educators and employers all need to tackle the realities of offshoring.
The Association for Computing Machinery (ACM), a group of information technology professionals and academics, who conducted a year of study, found globalization of and offshoring within the software industry will continue and increase over the decade. The US followed by the UK have been the largest offshorers, but other countries in Western Europe, Japan, Korea, Australia and even India send work offshore. The study found the annual dollar value of worldwide offshoring trade for recent years has been estimated to be between $1.3 billion and $32 billion, depending on whether certain exported products are counted and whether the numbers for multinational companies are included.
ACM president David Patterson said while offshoring has increased over the last five years, the study sites Bureau of Labor Statistics data that also indicates that more IT jobs are available today in the US than at the height of the dot.com boom. It is estimated that only 5 percent of European businesses (of all sizes) are offshoring and at most 2 percent to 3 percent of European IT workers will lose their jobs to offshoring by 2015. In Germany, only 15 percent of companies are now offshoring and perhaps a total of 50,000 German jobs have been lost to offshoring so far, according to the study.
Source: EDITTECH INTERNATIONAL
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