4/26/07

Are outsourcing fears misplaced?




More articles supporting this site’s several pronouncements are coming out. In the linked article, the CEO of Infosys talks about the need to cope with the times. Details Here

With the upcoming US presidential elections, people paranoid with offshore outsourcing are increasing their call for the candidates to go against the trend. This is despite proofs supporting the argument that outsourcing actually brings about an increased demand for higher value jobs (onshore), resulting to higher productivity and stronger American companies.

The IT industry shows that more than 147,000 new US jobs were created. The problem with the American manpower pool is that it cannot fulfill the quantity of demand. Please read the complete article here.

I’ve read a few years ago, that despite the growing need for IT graduates and the increasing salaries of IT professionals, the number of Americans enrolling in IT courses continues to go down.

This scenario is very similar to the transcription sector where the supply of onshore transcribers is a lot less than the actual demand. A relative in the US tells me that daily newspapers always include advertisements of companies “Looking for transcriptionists”.

“But there is so much global demand for employees proficient in programming languages, engineering, and other skills demanding higher level technology knowledge that outsourcing can't meet all U.S. needs. "There would have been a lot more than 147,000 jobs created here, but our companies are having difficulty finding Americans with the background," says William Archey, president and chief executive of the AeA.

One culprit is the dearth of U.S. engineering and computer science college graduates. Second, immigration caps have made it difficult for highly skilled foreign-born employees to obtain work visas. Congress has been debating whether to increase the numbers of foreign skilled workers allowed into the country under the H-1B visa program (see BusinessWeek.com, 3/27/07, "Immigration Reform: Americans First?").



No comments: