Yankee Group program manager Andy Efstathiou said offshore hiring is impacting the industry now, as evidenced by the lack of redeployment of IT services. “Budgets are getting cut, and people are getting laid off,” he told TechNewsWorld.

Despite an expected spike in the amount of IT services outsourcing to offshore firms, the impact likely will be mitigated by solid services-industry growth in the United States, researcher IDC said in reporting the results of a recent survey.
While offshore hiring likely will spread across a wider range of IT services going forward, an economic upturn and resulting demand for skilled technology workers are likely to offset resulting job losses and might even result in a worker shortage, analysts told TechNewsWorld.

“It is recovery and economy,” IDC program manager Ned May said. “In this market segment, we’re going to see growth again. That growth will create jobs. Certain jobs will be lost, but other jobs will be in high demand.”
May said it was a skills shortage two to three years ago that fueled the current trend of offshore IT outsourcing — and there is potential for another shortage.

Outsourcing Up
The theme of the recent IDC supply-side survey, “Offshore Services: The Impact of Global Sourcing on U.S. IT Services Market,” is that current foreign outsourcing is mitigated by the level of positions lost overseas, U.S. companies profiting from the trend and — most importantly — domestic job growth that will match or supersede offshoring.

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