1 out 4 IT jobs moving offshore

Large companies are accelerating their use of offshore outsourcing, and as many as a quarter of IT jobs at Global 1,000 firms may be moved offshore by 2010, according to The Hackett Group, a Miami-based consulting firm whose clients include many multinational corporations.  See  Survey: One in four IT jobs moving offshore from www.computerworld.com And the chances are they are correct. Increase if offshoring combined with unemployment rate highest in 26 years paints a very scary picture. What does it mean for IT professional in this country? Does it really mean “R.I.P. Good Times”? Probably not, it just means that times have changed and it’s time to change. First and most important it to recognize that offshore outsourcing is here to stay, as long as there is substantial difference between compensation rates for IT skills around the world there will be compelling reasons to move the jobs top the regions with lower rates.

Of course with world getting flat one day that place could be closer to you home than you have thought… A good friend of mine just came back from her trip to Hong Kong / Beijing / Shanghai. While she was deeply impressed with all new constructions and Olympic architecture she was really astonished with price raise across the board. Cost of living in cities such as Moscow, Kiev or St. Petersburg is astounding. Real estate prices in Bangalore challenge many US cities. A few months ago while walking on Rambla in Barcelona I just had to take a picture of great deal on flip-flops – and that’s before the dollar surged against Euro (so the discounted price below is ~$270).

prices

Take another look at the price above and think about Spain which according to Gartenr is one of top 30 outsourcing destinations… The changes in prices are dramatic and they are just a reflection of changing standards of living, of changing and reshaping a distribution of wealth. Changes in cost of living inevitably find their way in offshore rates and eventually in IT execs minds.  And that means profound changes in the IT Outsourcing landscape.

One thought on “1 out 4 IT jobs moving offshore

  1. $270 for a pair of flip-flops, you got to be kidding me. If in China, you just haggle the price down to $1 if that’s what you are willing to pay.

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