Sunday, March 23, 2008

Offshoring creates more high end jobs in US

Contrary to the fear that offshoring will take away jobs in plenty from the US, the Wharton report highlights that Firms Go Begging for High-Tech Talent.
Some of the misconceptions that are addressed are:
- "The programming part is what you can outsource. What employers want are people who can be business analysts." Employers need people who can handle "management of technology in business. It requires all the leadership skills, strategic vision and project management ability used in any management career."

- Business Intelligence jobs are increasingly in demand."Computer processing is getting less expensive, while human processing is getting more expensive. Companies understand the price of customer churn, so they're increasingly focused on customer relationship management, which means figuring out what customers value and giving it to them.
-Compiling figures come from U.S. Bureau of Labor Statistics data and from businesses in compliance with state laws, the American Electronics Association
-cites the high-tech industry ended 2006 with a net addition of 150,000 jobs to the U.S. economy, up from 87,400 in 2005.

-projects a 36 percent growth rate for computer engineers and MIS professionals over the next 10 years, making these two of the fastest growing occupations around. They're ones with high pay, too at an average annual salary of $75,000, which is 86 percent more than average private-sector wages overall in the U.S.

However, I see there could be two major areas of concerning the pipeline of supply for the industry:
1. There has been a 70% reduction in the enrolling of students in the Computer Science programs as well as Information systems- compared to the figures 10yrs ago.
2.Ageing work force in the middle and senior management
Half empty? Half full? Globalisation does impact the nature of jobs being on demand!! I am sure my associates from NPA ( would be sensitive to this trend and add value to their clients and candidates alike.


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Sridhar Katta said...

gI like your blog and your summarized information helps me a lot. I work for Satyam and I operate from US. In the recent past, we have been recruiting a lot of Americans in US. I can't agree with you more that, the offshoring is creating more high end jobs. Customers do not want anybody less than 5 years of experience. At a minimum, they want somebody who can manage their work with minimum support. Most of the cases the guys are asked to lead small teams in India. What this means is that the American Junta, should be more qualified and capable than the Indian or chinese Junta. While theoritically, it is very simple, in practice I don't think its happening. The resumes I see on a daily basis, are either too expensive or too weak. Most of the hits have been either Indian folks or Chinese folks and some times other foreign nationals. This might seem as good news for our folks but I believe it is not. The reason, if the trend continues, the policy makers will make it more tough for our folks to enter and work in US.

In conclusion, while high end jobs are being created in US, a big chunk of these jobs are actually going to non-americans. Food for thought for everybody.

Good work! Keep Blogging!

Call Centers in the Philippines said...

An insightful and articulate post! For years now outsourcing work has been a practice of many companies. It is the practice of using outside firms to do work normally performed within a company. Outsourcing made a financial sense to companies that were now able to hire out even their core functions to specialized firms that could do them at significantly lower prices. At one point, companies started outsourcing work to the offshore companies that had the cheapest labor force. The trend rapidly grew and became known as offshoring. - Jaime