Last modified: November 20, 2003, 8:22 AM PST
By <http://msn-cnet.com.com/2040-1096_3-0.html?tag=byline> Dinesh C.
Sharma
Special to CNET News.com
Market research firm IDC on Thursday predicted that offshore activities
of the U.S. information technology industry are set to rise dramatically
over next four years but that the rise may not affect U.S. jobs in ways
some industry observers feared.
The Framingham, Mass., research firm surveyed IT vendors and found that
<http://msn-cnet.com.com/2100-1001-985379.html?tag=nl> lower operation
costs will continue to drive the offshore component of their businesses,
which is set to rise from 5 percent in 2003 to 23 percent in 2007.
Services tasks that may be affected by offshore outsourcing include
maintenance and support, implementation and operations--activities that
IDC views as requiring low skills and that involve repeatability.
Hardcore business work such as planning, IT education and training will
remain relatively resilient against the offshore trend.
IT outsourcing to locations such as
<http://msn-cnet.com.com/2100-1011-5074725.html?tag=nl> India has been
criticized in the United States because of fears about the potential
<http://msn-cnet.com.com/2100-1022-993086.html?tag=nl> loss of
technology jobs.
But IDC analysts said the debate is misplaced.
"Much of the spending to date has focused on only a few activities,
which limits the impact of offshore on the broader market," Ned May,
program manager of worldwide services research at IDC said in a
statement.
"While there will be a migration of some jobs overseas, it will be
coupled with steady growth in a number of service activities on U.S.
soil," he said.
------------
-Gel
-----Original Message-----
From: Doug White [mailto:[EMAIL PROTECTED]
The things I see as negatives is:
Market to the US and send jobs overseas. Creates a diminishing market,
right?
National debt - borrowing against the future has killed economic growth
several
times in the past, and will again. We are facing record setting debt
and
deficits.
Hype of economic turn-around when the current gains are only seasonal
hiring
peaks which will disappear after the holidays.
Inclusion of defense spending into the overall economic indicators is a
false
positive.
Extending the duty tours of the military reserves creates jobs, right,
even if
they are only temporary until the reservists return to their civilian
jobs.
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