February 24, 2006
AMC report: Offshoring computing jobs not a real threat to US economy and job situation
There has been a near-panic situation because of the outsourcing of computing positions from the US. However, according to a study published in the New York Times, this fear is largely unfounded.
The study, conducted by the Association for Computing Machinery (ACM), has shown that the forecast regarding job losses because of the movement of computing work outside the US is baseless. While only about 2-3 percent of jobs are likely to move overseas, the number of new jobs created far exceeds this figure. In fact, IT hiring is at a higher pitch than during the dotcom boom in the 1990s. Moshe Y Vardi, co-chair of the study group and Rice University computer scientist, believes that there is more competition, but IT jobs are not dwindling in the US.
The AMC study, titled "Globalization and Offshoring of Software", details the various factors operating in this arena, such as the economics of offshoring computing jobs, the logic of offshoring from the national and company perspectives, the globalization of research, the risks and exposures in offshoring, the lessons leaned from offshoring, and the political forces that operate behind offshoring.
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