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News: Technology Jobs Offshore: An Opportunity or a Threat?

Finally, the U.S economy is bouncing back. However, something seems to be unsettling — the obvious transfer of tech jobs such as technical support and computer programming to lower-costs destinations – spearheaded by India. This trend is popularly known as offshore outsourcing.

The debate on offshoring seems to heighten…

There seems to increase in the recent public expressions and debate regarding this job migration trend. A number of signs in terms of political reaction were seen earlier. For instance, in the previous month, the State of Indiana backed out of a contract with Indian technology company – the contract was worth $15 million. The Indian technology company was supposed to provide technological services to the State of Indiana.

That’s not all; another development shows there’s a proposed bill in New Jersey, intended to put a check on how companies working for the state adopt offshore workers.

According to the report that Forrester Research published this month, “the movement abroad is not with full force.” The research and technology consulting firm lamented on the increasing tide of offshore hype in their report. Notwithstanding, the firm itself was key in building the debates and expressions regarding offshore outsourcing.

Their key role which was evident in a report that Forrester Research published in November 2002 also contributed to arousing fears. The report in question predicted there would be a movement of approximately 3 million services jobs from the U.S. to offshore destinations by 2015. The report also added that the first ‘overseas exodus of jobs’ would be spearheaded by the information technology industry.

So, what indeed is happening?

Is the movement of technology jobs to offshore destinations a normal evolution of the economy, or is it a cataclysmic jolt? Here’s the summarized response — this trend is real, has come to stay and it’s proving to be the next step in American economy globalization. Or why do you think that despite the hot debates and agitations over the years to stop the trend, offshore outsourcing is still matching on?

No doubts, the trend comes with a challenge to different stakeholders – government, industry, and citizens. However, the transfer of some tech jobs to offshore destinations is appropriate for a long-worn historical economic change model, as well as the ongoing adjustment in the U.S.

According to Intel’s Chief Executive, “to stay at the competitive edge and keep up/enhance American living standards, it is necessary to gear up the technology food chain.” While this may sound like cheap advice by a fellow who is peaked up there, it is important to note that Intel is an ideal instance of a company that was able to navigate a major international competition threat successfully.

So, what lesson can be gleaned from all of these? Let nature take its natural course. There’s no need for fighting what has come to stay.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

One Response to “News: Technology Jobs Offshore: An Opportunity or a Threat?”

  1. Gene Marks says:

    Most influential man on the planet. Thanks, Daven.

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