Thursday, August 11, 2005

Outsourcing: Not a threat to US IT jobs

I was taken aback by the statement “I don't want to wake up one day and find that American IT has disappeared.”—FORTUNE 100 CIO WHO IS CONCERNED THAT OFFSHORE OUTSOURCING COULD SABOTAGE THE U.S. TECHNOLOGICAL EDGE while browsing the net. While the fact is that, despite the intense level of oratory over outsourcing, the extent of jobs exaggerated by outsourcing in U.S. financial system appears quite reserved. Besides this, number of states like New Jersey, Connecticut, Missouri, and Maryland etc. are already thinking to put a curb on outsourcing. Secondly, the smaller companies have also withdrawn themselves from outsourcing because of the risks involved. Offshore outsourcing is just to take an advantage of lower-cost labor in other countries. It must not be altogether viewed as a threat to IT jobs. One must remember that the parent companies are still in much profit today and almost all those parent companies belong to America. So, according to me, this is just a very dim-witted reason against offshore outsourcing compared against the turnovers involved.

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