| Companies specializing in IT (Information | | | | city in India alone, Bangalore, there are |
| Technology) are increasingly turning to | | | | 100,000 workers working on software |
| outsourcing their labor to developing | | | | development, chip manufacturing, computer |
| countries in Latin America, Africa, Asia and | | | | operating systems, etc. Even though these |
| the MidEast. The reason is reduction of | | | | employees make less than $7 per hour, they |
| labor costs, which can be as much as 50% | | | | are highly trained IT professionals. |
| lower in these developing regions than in a | | | | Outsourcing such as this benefits the economy |
| fully developed nation. | | | | of the advanced country in cost savings, as |
| | | | well as the economy of the developing country |
| Companies that have specialized in Business | | | | by adding income. |
| Process Outsourcing (BPO) have found that | | | | |
| their systems lend themselves perfectly to | | | | The entire IT industry is a rapidly changing |
| many segments of IT services. These services | | | | one. Outsourcing companies that deal with IT |
| include the development and testing of | | | | projects must work at staying on top of all |
| software, data entry, data processing and | | | | new developments in IT technology. This |
| help desk support. The IT company located in | | | | requires constant training and re-training, |
| the offshore country will hire highly trained | | | | sometimes at the headquarters of the company |
| and expert professionals who are able to | | | | that hired them. Business PRocess |
| develop software in .NET, Java/J2EE, | | | | Outsourcers make sure to hire their employees |
| telecommunications applications, database | | | | from a highly qualified, English fluent labor |
| solutions and smartcard solutions, just to | | | | pool, and maintain and upgrade their training |
| name a few. The engineers and other | | | | on a constant basis. |
| professionals who perform these duties can | | | | |
| either be full time employees of the offshore | | | | In order to compete in a global economy, IT |
| company, who move from product to product | | | | companies must outsource to stay alive. If a |
| depending on which customers the outsourcing | | | | company chooses not to outsource for |
| firm has, or they themselves may be hired on | | | | political reasons or supposed loyalty to |
| a contractual basis. | | | | their country, they are making a grave |
| | | | mistake. They essentially are choosing to |
| It is not only large IT companies with | | | | take on more expenses then their competitors |
| sizeable projects that turn to outsourcing as | | | | and in turn may be driven out of business. |
| a cost effective solution. Small, individual | | | | This is particularly true in slim margin |
| IT jobs can also be outsourced to an IT | | | | businesses. What would be worse for their |
| professional. India is by far the most | | | | country, a company with a certain percent of |
| popular destination for outsourced IT demand, | | | | employees offshore or no company at all? |
| especially from the United States. In one | | | | |