Gartner Inc., a Stamford, Conn., research and consulting firm, estimates that 10 percent of all the jobs at US information-technology vendors and service providers and 5 percent of all tech jobs in more general companies will shift offshore by the end of next year.
Andre Brassard keeps sending out resumes but has largely given up on the profession that employed him for a decade: writing software.
In his old department at Mindspeed Technologies Inc., most of the software engineers are gone. The work Brassard and his colleagues did is now largely done in Ukraine for one-quarter to one-third the cost.
“What has happened to me is irreversible,” Brassard said. “It’s not like the downturn of 10 years ago. Then it was just bad times.”
In the next generation of high-tech companies, entrepreneurs and venture capitalists are making the outsourcing of jobs overseas part of their business plans from the start. Ruthlessly, perhaps, they see outsourcing as the latest innovation in an industry built on innovation.
“Right when you think about Employee 11, you should think about India,” said Ravi Chiruvolu, a general partner with Charter Venture Capital, a Palo Alto, Calif., firm that invests in fledgling technology companies. “My view is you should not start a company from scratch in the United States ever again.”
Outsourcing is dramatically changing the way companies of all sizes distribute their workers, hitting hard places like Boston, the second biggest tech center behind Silicon Valley. People and companies are forced to adjust, often with great pain, to a fundamental restructuring of America’s role in the global technology industry, one creating a sharp division between the people who invent and sell software and those who actually write and maintain those computer programs.
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