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