Friday, July 29, 2005

Software outsourcing and its future

From: free-press-release

A report by research and consulting firm Forrester Research mentions that, jobs which are lost in United States because of software outsourcing are primarily low salary IT jobs. These jobs are like software programming or computer support specialists or computer operators. But on the other hand, high end high paying jobs like system analysts, network analysts and research analysts have seen continuous and stronger growth. Jobs in this niche market is growing steadily at the rate of 4 to 5% every year. These jobs which require stronger domain knowledge and knowledge of internal working of IT systems and business process are difficult to software outsource.Jobs not affected by software outsourcing
Jobs for software engineers for the position of system analysis and application development implementation are also growing at the rate of 6% a year. This is because, though software outsourcing can be done to India or other offshore software development locations, customers require in-house staff for customization and maintenance of purchased software. Software outsourcing decreasing?

Report also mention that, attraction of cost saving in software outsourcing is yet very high and because of that, increase in jobs like software programmer will be very minimal. Also, because of very low increase in software programming jobs, salary rise will also hardly 1% in next few years. Salary of computer operators and database administrators will also grow at barely 1% rate. On the other hand, report also mentions about jobs which will have highest salary rise. Salaries of computer research scientists and information system managers will have highest growth which will be around 3.5% every year. While salaries of analysts and system administrators will grow at the rate of 2 to 3% every year.


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