Software outsourcing and its future

A report by research and consulting firm Forresterand consulting firm Forrester Research mentions that,
Research mentions that, jobs which are lost in Unitedjobs which are lost in United states because of
states because of software outsourcing are primarilysoftware outsourcing are primarily low salary IT jobs.
low salary IT jobs. These jobs are like softwareThese jobs are like software programming or
programming or computer support specialists orcomputer support specialists or computer operators.
computer operators. But on the other hand, high endBut on the other hand, high end high paying jobs like
high paying jobs like system analysts, network analystssystem analysts, network analysts and research
and research analysts have seen continuous andanalysts have seen continuous and stronger growth.
stronger growth. Jobs in this niche market is growingJobs in this niche market is growing steadily at the rate
steadily at the rate of 4 to 5% every year. These jobsof 4 to 5% every year. These jobs which require
which require stronger domain knowledge andstronger domain knowledge and knowledge of internal
knowledge of internal working of IT systems andworking of IT systems and business process are
business process are difficult to software outsource.difficult to software outsource.
Which jobs will not get affected by softwareWhich jobs will not get affected by software
outsourcingoutsourcing
Jobs for software engineers for the position ofJobs for software engineers for the position of
system analysis and application developmentsystem analysis and application development
implementation are also growing at the rate of 6% aimplementation are also growing at the rate of 6% a
year. This is because, though software outsourcingyear. This is because, though software outsourcing
can be done to India or other offshore softwarecan be done to India or other offshore software
development locations, customers require in-housedevelopment locations, customers require in-house
staff for customization and maintenance of purchasedstaff for customization and maintenance of purchased
software.software.
Why Software outsourcing will decreaseWhy Software outsourcing will decrease
Report also mention that, attraction of cost saving inReport also mention that, attraction of cost saving in
software outsourcing is yet very high and because ofsoftware outsourcing is yet very high and because of
that, increase in jobs like software programmer will bethat, increase in jobs like software programmer will be
very minimal. Also, because of very low increase invery minimal. Also, because of very low increase in
software programming jobs, salary rise will also hardlysoftware programming jobs, salary rise will also hardly
1% in next few years. Salary of computer operators1% in next few years. Salary of computer operators
and database administrators will also grow at barelyand database administrators will also grow at barely
1% rate. On the other hand, report also mentions about1% rate. On the other hand, report also mentions about
jobs which will have highest salary rise. Salaries ofjobs which will have highest salary rise. Salaries of
computer research scientists and information systemcomputer research scientists and information system
managers will have highest growth which will bemanagers will have highest growth which will be
around 3.5% every year. While salaries of analystsaround 3.5% every year. While salaries of analysts
and system administrators will grow at the rate of 2 toand system administrators will grow at the rate of 2 to
3% every year.3% every year.
Conclusion about offshore software developmentConclusion about offshore software development
Report concludes with note that software outsourcingReport concludes with note that software outsourcing
which has major costs saving today will decrease bywhich has major costs saving today will decrease by
2008. Because in US salary rise will be very less. While2008. Because in US salary rise will be very less. While
in India and other offshore software developmentin India and other offshore software development
destination, because of lack of availability of resources,destination, because of lack of availability of resources,
salary rise will be very high. This will decrease thesalary rise will be very high. This will decrease the
difference between salary of Indian and US softwaredifference between salary of Indian and US software
engineer and eventually decrease costs saving. Soengineer and eventually decrease costs saving. So
many companies will prefer in-house resources rathermany companies will prefer in-house resources rather
then software outsourcing.then software outsourcing.
For more information please visit A report by research