Outsourcing of computer jobs a misconception

Globalization and Offshoring of Software
Outsourcing of computer jobs a misconception

 

I live in Oregon and recently one of our major hospitals just laid off a bunch of their software people.

I also have a friend who is a developer for a semi conductor and he is telling me they shifted a bunch of software jobs overseas.

My wifes cousin use to work for HP, but got laid off when they shipped a bunch of their jobs overseas.

So ...

 

Those examples illustrate the overall perception problem. A lot of IT jobs for the Fortune 500 have gone overseas. That makes the news.

Yet IT employment as a whole continues to increase. Why? Smaller companies continue to add programmers at the same rate they always have. They either are too small to efficiently outsource, or need to remain agile to compete. The small and medium company growth never makes the news.

 

The company I work for is hiring field service positions.

 

It seems everyone talks about programming jobs when this issue is discussed. I can't speak to that because I'm not a programmer but I've been in IT for more than 20 years.

The one thing that is alarming to me is that even the most basic computer tech support positions are now requiring extensive network/infrastructure knowledge to get in the door. I've seen jobs in NYC paying $10. an hour (you'd never be able to survive on that here) and they want multiple certs in things like CCNA, database administration and in some cases MCSE. Gone are the days when an A+, or simply techie experience, could get you in fixing printers, changing toner and setting up, configuring and deploying hardware. From there you could learn from the people around you.

I don't know how it is throughout the rest of the country. What does a basic computer tech earn where you are and what are their typical duties? What about network and sysadmins?

 

I agree with Jeff. While Sage Software (Sage Group plc) has almost 10,000 employees worldwide we have been expanding our software development departments across North America this past year. I find it funny that in general reports of doom and gloom are backed up by anecdotal evidence while the ACM's and the DOL's statistics show otherwise. There are so many people who have bought into the misconception that "IT jobs in the US are a thing of the past" and on top of that they seem hell-bent on propigating it.

Is the IT job market going to change because of outsourcing? Of course. However, all indications are that more creative or higher abstraction jobs are taking their place. From my perspective -- its all good.

 

"1. Globalization of, and offshoring within, the software industry are deeply connected and both will continue to grow. Key enablers of this growth are information technology itself, the evolution of work and business processes, education, and national policies

2. Both anecdotal evidence and economic theory indicate that offshoring between developed and developing countries can, as a whole, benefit both, but competition is intensifying.

3. While offshoring will increase, determining the specifics of this increase is difficult given the current quantity, quality, and objectivity of data available. Skepticism is warranted regarding claims about the number of jobs to be offshored and the projected growth of software industries in developing nations.

4. Standardized jobs are more easily moved from developed to developing countries than are higher-skill jobs. These standardized jobs were the initial focus of offshoring. Today, global competition in higher-end skills, such as research, is increasing. These trends have implications for individuals, companies, and countries.

5. Offshoring magnifies existing risks and creates new and often poorly understood or addressed threats to national security, business property and processes, and individuals' privacy. While it is unlikely these risks will deter the growth of offshoring, businesses and nations should employ strategies to mitigate them.

6. To stay competitive in a global IT environment and industry, countries must adopt policies that foster innovation. To this end, policies that improve a country's ability to attract, educate, and retain the best IT talent are critical. Educational policy and investment is at the core.

Conclusion
Globalization of, and offshoring within, the software industry will continue and, in fact, increase. This increase will be fueled by information technology itself as well as government action and economic factors and will result in more global competition in both lower-end software skills and higher-end endeavors such as research. Current data and economic theory suggest that despite offshoring, career opportunities in IT will remain strong in the countries where they have been strong in the past even as they grow in the countries that are targets of offshoring. The future, however, is one in which the individual will be situated in a more global competition. The brightness of the future for individuals, companies, or countries is centered on their ability to invest in building the foundations that foster innovation and invention."

Its not all bad, but many are still going to feel the effects of the outsourcing as it continues to grow. Especially with the significant amount of capital being spent in other countries for engineeing disciplines.

In the end though. All those IT guys working at starbucks aren't gonna care what some statics say. And their voice tends to be a lot louder than the ACMs.

 

I know this isnt the place, but most of the misconception of outsourcing is politically motivated and design to paint our economy in a certain light. If you go to monster, dice, hotjobs, or careerbuilder, there is so much IT oriented work you can choke on it.

I think part of the problem is that there are sooooooo many people without a clue trying to fill positions they simply may not be qualified for OR they are demanding too much money for tasks that can be completed by someone else for less....


Just my thoughs...

 

Well, and the other thing I've noticed in trying to transition over is that there certainly appears to be much more demand for senior-level IT professionals (at least in programming, and this is anecdotal evidence) and very little public demand for entry level. But I do agree that, if and when you can break in and get experience, it seems that there are a ton of jobs out there.

 

One of the tactics used by Industry is to advertise multiple IT jobs at China/India-level (or unlisted) wages that they really don't expect to fill with a US citizen. This then provides justification to either outsource or fill the position with a Visa holder.

 

Here is something else. These are my thoughts, experiences, and ideas. Everyone is different, and I certainly respect others thoughts here. So, please don't think I'm trying to start any kind of personal attack or debate. In my opinion, lots of companies only post a job listing to protect themselves from the EEOC.

In my opinion Just because there are job postings on monster, dice , flipdog, hotjobs; whatever, doesn't mean those jobs really exist, or that they will really be filled.

Mitchell wrote:

and I agree with that.

Brian Graham, in "Get Hired Fast", writes on page 10: "A few years ago, you could get a job within weeks (or even days) simply by posting your resume on Monster, Dice, FlipDog, or other job boards. It wasn't unusual for candidates in high-demand fields to get a dozen calls on the first day of posting a resume.

These days, however, you may be shocked when you visit...likely to discover that a significant percentage of these listings are for jobs that are already filled."

I also don't see this economy as applicants demanding anything. I see employers "demanding" a BS degree in CS or IT, along with industry certs, and several years experience, and then only wanting to pay mid-twenties. And sadly, finding someone who will work for that.

In my opinion, Another trick some employers play is to post the salary range of say $27,400 - $45,770. We've always been told to negotiate, right? Now, some employers DO NOT negotiate and see an applicant who tries to negotiate salary as being someone they do not want.

Ok, back to the salary trick, some employers will say that salary range is only what one can expect over a lifetime, and that $27, 400 is the salary they will pay for entry level (entry level to them being, years of experience, industry certs, and possibly even a master's degree) and absolutely refuse to increase the salary, because they are overwhelmed with beat-down, hang-dog applicants who will and do work for peanuts.

Wasn't it George Orwell who wrote the future was the image of a giant boot on the face of humanity? It's what I see. And I'm a happy, warm, friendly kind of guy that servers in a restaurant actually fight over to wait on. (True story)