It Workers Hit Hardest by Offshore Outsourcing, Survey Finds

Based on the data collected from a sample of 10,000displaced. The researchers did not predict what future
people, the article finds that 8% of IT workers havedisplacement rates might be, but claim that as
been displaced by offshore outsourcing which is twiceoffshoring grows, tech workers without jobs that
the rate of workers in other occupations.don’t require interpersonal skills are being replaced
The researchers at Stern and Wharton Businessmore rapidly.
Schools found that because IT jobs are purelyIT workers worried about displacement must develop
technical jobs involving little or no customer interactioninterpersonal skills and find IT careers that involve face
they are the most at risk from outsourcing. The baseto face interactions. Since IT workers have been more
rate of offshoring across all industries is just over 15%,severely affected than other types of workers,
but some 40% of all tech and telecommunicationsTambe argues that policy-makers could focus on tech
companies are doing some type of offshore work,workers to provide help, including job training and
according to the research by Dr. Prasanna Tambe, angovernment compensation to offset wage losses.
assistant professor at Stern Business School.Educational institutions will have to react as well, with
By occupation, more than 30% of the survey"increased emphasis on the development of
respondents said they were offshoring softwareinterpersonal and management skills within the IT
programming and development jobs, but only aboutcurriculum."
half, or 15.5%, reported offshoring systems analysts,Sources for this article can be referenced by
who typically interact more with others in a business.contacting the author or by accessing the links found in
Of those displaced by offshore outsourcing, 70% lostthe bio section of this article.
their jobs, with older workers more likely to be