Offshoring Employment Opportunities in US
American companies try to cut their expenses through offshore outsourcing or offshoring. In offshoring, a company relocates to other countries some or most of its business processes, such as production, manufacturing, or services, primarily because the cost of labor in those countries is much cheaper compared to the costs in the company’s home country. The relatively higher value of the dollar against these countries’ currencies makes it possible for workers in Canada, India, China, or the Philippines to be paid less than their American counterparts—while receiving reasonable or above-industry pay rates by their countries’ standards. Companies argue that this saves them a lot of money that they could use to create even more jobs at home.
This phenomenon has created a thorny debate as to whether offshoring is a threat or an opportunity to American workers. Before you decide on these options, read on:
Point #1
In 2004, the Information Technology Association of America hired Global Insight to examine the effects of outsourcing in the IT industry. Surprisingly, the firm reported that even though outsourcing has some short-term negative effect on US employment, the long-term effects outweigh the problem of job loss.
According to the Global Insight report, "the cost savings and use of offshore resources lower inflation, increase productivity and lower interest rate.” These benefits yielded about 90,000 net new jobs in the US in 2003. It is projected that in 2008, around 317,000 new jobs will be generated in the IT industry. These new jobs will command a salary raise of 0.44 percent because of outsourcing.
Point #2
Thomas Donohue, President and CEO of the U.S. Chamber of Commerce, actively promotes outsourcing of jobs. "One job sent overseas, if it happens to be my job, is one too many, but the benefits of losing of jobs, outweigh the cost,” Donahue said in a speaking engagement in California in 2004. He believed that high-tech jobs that have been relocated to low labor cost countries—mostly in Asia—let companies save money that could be used to create new jobs for Americans.
Point #3
Due to the offshoring boom, offshoring management is now considered as one of the cutting edge careers in 2008. More and more offshore managers are needed to help grow and sustain businesses in an increasingly digital and globalized world. An offshoring manager has a viable and promising career growth especially when he or she has a good academic background on IT, and has strong organizational, leadership, and communication skills required for this job.
Get your IT degree here, and take advantage of the growing employment opportunities in the outsourcing industry. You might even become a global boss as you manage IT companies in different countries!
