Statistics show the actual threat of offshore labor to Unites States Software Engineering field is minimal, and in many cases, has actually increased demand for local US engineering. But the debate continues creating confusion. In actuality the IT jobs offshored or replaced in the US and Western World hovers around 11% and in some fields as low as 2%. A small percentage indeed as only around 6% US engineers lost jobs because of offshoring.
Whether you're in IT, customer service, accounting or finance, there is no need to worry about offshoring to low-cost, well-educated, employees in countries such as India. Offshoring trend though real is now more of a hype than a fact when it comes to its influence on American compensation levels. It is made to be perceived that people have lost pay because of offshoring.
Currently, a little over 250,000 US jobs have been offshored while there are over 145 million jobs in the American economy, so those 250,000 jobs represent roughly 0.13 percent of the job market. A Forrester Research report once predicted that by 2015 the US economy will lose 3 million jobs to offshoring, mostly in labor-intensive functions such as data entry, programming and back-end processing. That works out roughly 2 percent of the US job market.
Even if the offshoring trend continues over the next decade compensation levels for positions in the US is unlikely to decrease; if anything, the rate of salary increase might slow somewhat.
When Going gets Going
Technology jobs aren't the only jobs that are going overseas. US banks, brokerage firms, insurance companies, mutual funds and other financial service firms are preparing to move half-a-million jobs overseas over the next five years.
What attracts US companies?
Indian companies are selling US companies on outsourcing various finance jobs, including:
- Asset Management: Back-office processes, unit record keeping, 401k pension administration and equity research.
- Consumer Lending: Credit card transaction processing (billing and collecting) and customer care and telemarketing.
- Insurance: Policy administration and claims processing.
- Retail Banking: Customer care, account opening and customer acquisition
Despite the data, some job seekers are worrying too much about offshoring. They have a tendency to see all labor moving to China, India, the Philippines and other low-cost labor communities and this pessimism is seeping into their job search. If you're working in a field that's outsourcing jobs offshore, check the past practices of potential employers and track current company news so you'll know who's considering offshoring your position. Try making yourself more competitive at home and abroad by completing any certifications or advanced-degree programs your industry values.
