US high-tech firms will outsource one out of 10 jobs to low-cost emerging markets by the end of next year, according to a report Tuesday by a market research firm.
The report by Gartner Inc indicated that one out of every 10 jobs within US-based IT vendors and service providers will move offshore.
Additionally, one of every 20 high-tech jobs within other companies will also be outsourced, Gartner said.
"To many CIOs and business executives, the decision to outsource activities offshore is fiscally sound -- the cost, quality, value and process advantages are well-proven," said Diane Morello, vice president and research director at Gartner. "Offshore outsourcing is becoming a tool for improving service delivery and a source of highly qualified talent in greater numbers."
Many firms such as airlines, credit card companies and banks have shifted their "back-office" work to places such as India which has the world's second largest pool of English-speaking computer literates after the US.
Gartner said that trend is growing, but that US firms need to be concerned about the impact of outsourcing on the workforce and overall performance.
"CIOs [chief information officers] need to communicate clearly, honestly and respectfully about the transition plan, and about the options available to affected employees," Morello said.
"The way in which enterprises deal with employees during the offshore transition will be lasting testament to the perception of leadership and the reputation of the company as an employer."
The growing moves toward outsourcing have sparked legislative efforts in the US to curb the trend, although India has protested these efforts.
Industry groups estimate the US high-tech workforce at about 10.3 million. Gartner analysts said the increase in outsourcing could lead to an additional 500,000 IT jobs lost from US market in the next 18 months.
A subsidiary of a Hong Kong-based company that has lost control of two critical ports on the Panama Canal said it is seeking US$2 billion of compensation in damages from Panama over its “illegal” takeover of the ports. Panama Ports Co, a unit of Hong Kong’s CK Hutchison Holdings (長江和記實業), on Friday said in a statement that it is demanding the sum under international arbitration proceedings that it had already started. The Panamanian government last week seized control of the Balboa and Cristobal ports on each end of the Panama Canal, after the country’s Supreme Court declared earlier that a concession allowing
DETERRENCE: With 1,000 indigenous Hsiung Feng II and III missiles and 400 Harpoon missiles, the nation would boast the highest anti-ship missile density in the world With Taiwan wrapping up mass production of Hsiung Feng II and III missiles by December and an influx of Harpoon missiles from the US, Taiwan would have the highest density of anti-ship missiles in the world, a source said yesterday. Taiwan is to wrap up mass production of the indigenous anti-ship missiles by the end of year, as the Chungshan Institute of Science and Technology has been meeting production targets ahead of schedule, a defense official with knowledge of the matter said. Combined with the 400 Harpoon anti-ship missiles Taiwan expects to receive from the US by 2028, the nation would have
POSSIBILITIES EMERGE: With Taiwan’s victory and Japan’s narrow win over Australia, Taiwan now have a chance to advance if South Korea also beat the Aussies Taiwan has high hopes that the national baseball team would advance to the World Baseball Classic (WBC) quarter-finals after clinching a crucial 5-4 victory over South Korea in a nail-biting extra-inning game at the Tokyo Dome yesterday. Boosted by three home runs — two solo shots by Yu Chang (張育成) and Cheng Tsung-che (鄭宗哲) and a two-run homer by Stuart Fairchild — the triumph gave Taiwan a much-needed second victory in the five-team Pool C, where only the top two finishers would advance to the knockout stage in Miami, Florida. Entering extra innings with the game tied at four apiece, Taiwan scored
MISSION OF PEACE: The foreign minister urged Beijing to respect Taiwan’s existence as an independent nation, and work together to ensure peace and stability in the region Minister of Foreign Affairs Lin Chia-lung (林佳龍) yesterday rejected Chinese Minister of Foreign Affairs Wang Yi’s (王毅) comments about Taiwan, criticizing China as a “troublemaker” in the international community and a disruptor of cross-strait peace. Speaking at a news conference on the sidelines of the Chinese National People’s Congress, Wang said that Taiwan has always been a territory of China and that it would be impossible for it to become its own country. The “return” of Taiwan to China was the natural outcome of the Chinese people’s resistance against Japan in World War II, and that any pursuit of independence was “doomed
RSS