Outsourcing: The Prospect of Software Development

The growth of outsourcing industry today is indeed unstoppable. But according to the research and consulting firm Forrester Research, jobs have been lost in the IT sector in the United States because software outsourcing is actually low paying IT jobs. Among these low paying jobs are software programming, computer support specialists, and/or computer operators.

The high paying jobs are system analysts, network analysts and research analysts that are still dominating in the market as well. The jobs in this sector estimated the growth at a steady rate of 4% to 5% every year. It requires domain knowledge and idea about the internal working of IT systems and business process in this area. In software outsourcing these qualities are difficult to come through.

The jobs that are not affected by software outsourcing are system analysis and application development, which the rate increased of 6% per year. The reason of this increase is that the on-going demand of these areas is still increasing.

By outsourcing to low-cost countries like India and The Philippines, software outsourcing job rate would probably increased, but buyers still need in-house workforce as well to customize and upholder software. Large numbers of foreign companies are shipping jobs in Offshore Software Development, BPO and Call Centers to their Indian contributors or contractors, in India or The Philippines with a mind set of cutting costs by way of Offshore Outsourcing.

According to a research report, the forecast of software outsourcing industry in the near future might be declined. In addition, attraction of cost savings in software outsourcing is still very high and because of that, increase in jobs like software programmers will be extremely less.

Furthermore, the market of software outsourcing which has major costs savings today will decrease by 2008. Major reason behind this is the decreasing gap between the US salary and the outsourcing countries such as India, as it will lower the salary in US. While in India and other offshore software development countries, salary rise will be very high and this will also decrease the costs saving because of lack of availability of resources.

It is true that the offshore outsourcing industry is still increasing, and still surviving, because of lower costs from countries like India and Philippines, who really dominate in this industry.