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