Feeds

End in sight for IT jobs outsourcing massacre

No CIO is going to offshore his own job

3 Big data security analytics techniques

The offshoring of IT work to developing countries has been very popular with accountants looking to cut costs, but the limits are being reached of what jobs can conceivably be sent overseas.

Research by The Hackett Group estimates that of the 8.2 million business service jobs available in the US and Europe in 2002, only around 4.5 million will remain by 2016, with the rest moving to India, China, and other global outsourcing centers.

But the limit will then have been reached, with barely a million left that could realistically be moved offshore, and companies that would do so would face "a PR nightmare" and risk losing staff who don't trust their employers. This would mean an end to the cost savings for Western businesses, and would leave those hosting countries in a bind, since they will have to find new targets if they are to maintain current growth rates.

"In the US and Europe, offshoring of business had a significant negative impact on the jobs outlook for nearly a decade," said The Hackett Group chief research officer Michel Janssen. "That trend is going to continue to hit us hard in the short-term. But after the offshoring spike driven by the Great Recession in 2009, the well is clearly beginning to dry up. A decade from now the landscape will have fundamentally changed, and the flow of business services jobs to India and other low-cost countries will have ceased."

The IT profession has been hardest hit by the offshoring of service jobs, and will see a 54 per cent drop in employment between 2002 and 2016. Finance employment will fall 42 per cent, procurement jobs by 36 per cent, and human resource jobs will shrink by nearly a third as part of the drive to lower costs through offshoring and automation.

India remains the top spot for outsourcing, taking about 40 per cent of jobs, thanks in part to having an educated and largely English-speaking population. Eastern Europe has around 20 per cent of the market, but faces rising costs, and China is the destination for around 13 per cent of service jobs. ®

3 Big data security analytics techniques

More from The Register

next story
From corporate bod to startup star: The 10-month gig that changed everything
What I learned as a techie in my time away from globo firms
Facebook snubbed Google's Silicon Valley wage-strangle pact, Sheryl Sandberg claims
Report details letter COO wrote to court addressing 'no-compete deal' lawsuit
Another day, another nasty Android vuln
Memory corruption mess can brick your mobe
Barclays warns freelance techies of DOUBLE DIGIT rate cut
'IT was a car crash before, so this isn't going to get any better' - sources
VMware announces compulsory bi-ennial VCP recertification
Downside: more time and money; Upside: VMware hints at two-yearly release cycle
Sysadmins and devs: Do these job descriptions make any sense?
Industry lobby group defines skills used in 25 common IT jobs
Who earns '$7k a month' but can't even legally drink? A tech intern!
Glassdoor reveals astonishing salaries of Silicon Valley undergrads
Your CIO is now a venture capitalist and you work at their startup
This just happened without you changing job, by the way
Turnover at the top in Oz telco-land as AAPT, Huawei, Optus, lose top brass
Move along, nothing to see here but orderly transitions
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.