An Inside Look At Off Shoring It Jobs

2661 words - 11 pages

An Inside Look at Off-Shoring IT Jobs"In offshore jobs people are hired for an external organization to perform some business functions in a country other than the one where the product or service is traded or consumed", according to Bibby International services (Offshore). Forrester Research, a technology-consulting firm, indicates that by the year 2015, roughly 3.3 million United States (U.S.) based jobs in Information Technology (IT) will move offshore (Wright). Estimations by the Information Technology Association of America (ITAA) show potential savings from outsourced jobs to reach 21 billion dollars by 2008 (Wright). However, it is also estimated between 2001 and 2005, U.S. workers lost 80,000 IT jobs to off-shoring (Wright).Outsourcing jobs in IT to other countries is a rapidly growing industry as companies continue to look for employment outlets that are cheaper, faster, and sometimes more skilled. Benefits of off-shoring IT jobs cannot be denied, but there are risks associated as well. There have been varied stories of success and failure in recent years as off-shoring becomes more popular. Deciding upon a service provider for one's outsourcing and the type of service needed are essential. Therefore, it is pertinent that a company has an understanding of the types of services offered and how to manage them. It is also important for businesses to research the qualifiers of the offshore provider they choose before making a decision in order to prevent issues or problems.Off-shoring jobs in IT is not an overnight phenomenon; it is years in the making. Off-shoring IT jobs became a growing trend in the late 1990's and continues to be a topic of debate. Many proponents argue the financial benefits, while objectors claim that too many U.S. Americans are losing their jobs. Yet, most major U.S. companies are developing business plans that include outsourcing jobs. Countries reaping the benefit of U.S. off-shoring include front runner, India, along with the Philippines, Russia, and Ireland (Laube). Three of the leading U.S. based companies utilizing off-shore IT employment include GE, Intel, and Ford. This is due to many contributing factors, such as cost, time, efficiency, and the need to stay ahead of the competition. As stated by Craig R. Barrett, chief executive of Intel, "To be competitive and to maintain and improve American living standards, we have to move up the technology food chain" (Lohr).Understanding and Management of Offshore IT services offshore IT services range from application maintenance to infrastructure. The coordination of all offshore IT arrangements is similar no matter what country is being used, minus the language and cultural barriers. The off-shoring of IT services provides organizational benefits, such as a highly educated workforce, specialized IT talent, high-quality work, and labor cost savings (Laube 355). However, properly managing offshore outsourcing is a complex process.There are a number of different...

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