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Does offshoring mean developed countries are losing technical jobs to developing countries?

Written by: Jon Hansen

Article Overview: Member Question? Most of software solutions providing companies in US & UK are well experienced with explicit and undaunted gains of offshore software development outsourcing and thats why outsourcing comes as no surprise to anyone now. Then why are software companies in developed countries giving second thought to outsourcing to developing countries like India, Pakistan, Vietnam & others? Reasons why you Outsource: a) Outsourcing can help you share risk b) Outsourcing can help accommodate peak loads c) Outsourcing can help develop your internal staff d) Outsourcing is cost effective and saves you money

Does offshoring mean developed countries are losing technical jobs to developing countries?

Your question has broader implications beyond the realms of bottom line financial considerations for private sector businesses. In fact, it strikes at the heart of a country's economy and its prospects in the emerging global market.

The governments for a number of the "developed" countries haven't established the policies that are necessary to maintain a leadership position in the knowledge-based industries. For some of these, a third-world status in this as well as other important sectors is a definite possibility.

Especially given the aggressive policies of some European countries as well as China (whose increased focus on the software sector is notable).

As a means of introducing my research on this subject, I have provided links to just two of the many articles I have written. The first is titled Public Sector Procurement Practice and the Principles of External Economies, Clustering and the Global Value Chain.

The second link is to a reader question I received regarding the influence that small-medium enterprises have on a nation's economy.

There are major changes ahead. And while outsourcing comes as no surprise to anyone, the ripple effect on an individual nation's economy is going to be far greater than anyone could have anticipated.

If you would like to obtain additional information or other articles and papers on this subject contact the author.

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  Offshore Software Development

Article Tags: aggressive policies, definite possibility, developed countries, european countries, external economies, financial considerations, global market, global value, knowledge based industries, leadership position, private sector businesses, procurement practice, prospects, public sector procurement, reader question, ripple effect, small medium enterprises, software sector, third world, value chain



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