job offshoring information :
from sourcingmag.com "Offshoring What is Offshoring?"
India has emerged as the dominant player in offshoring, particularly in software work. Three factors came into play to make this possible. First, in the 1970s the Indian government put in place regulations that mandated that all foreign ventures have Indian majority ownership. Fearing government takeover, many large U.S. corporations, such as IBM, departed, leaving India in the position of fending for itself to maintain its technical infrastructures. This quickly forced the creation of schools to train students in technology.
Next came the global ubiquity of the Internet and massive telecommunications capacity, which enabled companies to get computer-based work done seemingly anywhere, including India.
Third, as the year 2000 approached, organizations hired service providers to update their legacy program code. Much of this work was handled in India, where English was commonly spoken, where there was a large and highly trained population of software engineers, and where labor costs were much lower than in developed countries. Y2K work proved the merits of an offshore labor force, and companies have continued tapping the talents and skills (and cost savings) made available by Indian offshore service providers. Major companies working as offshoring service providers in India include Tata Consultancy Services (TCS), Infosys and Wipro."
from CNBC :
"A study conducted by CareerBuilder.com and the Wharton School of the University of Pennsylvania, found that 28 percent of the employers surveyed who offshored expect more of their high-skill positions to be shipped overseas. "
further from same article :
"Not surprising, the primary reason for offshoring is cost. Forty-nine percent of employers said they saved over $20,000 for each job that was moved overseas."
(secondary reasons include going into other markets, too)
further, another article on offshoring :
"In an interview with Forbes, Robert Kennedy, director of the Global Initiative at the University of Michigan's Ross School of Business, outlines several of the broad business trends leading to an increase in offshoring, including the growing number of developing countries with low-cost labor forces entering the global economy, an increasing number of foreign students educated in America who choose to return to their home countries and the widespread digitization of business processes."
"The Hackett Group's Michel Janssen and Erik Dorr offered a similar take when I spoke to them earlier this month. According to their recent report, “Companies Accelerate Globalization of G&A Processes in the Face of Economic Crisis," Global 1000 companies will send more than 350,000 jobs in IT, corporate finance, human resources and procurement to offshore labor markets in 2009 and 2010, bringing the total number of back-office jobs being done offshore to more than 800,000. By 2010, they predict, about one in four jobs in IT will be located offshore. They say typical Global 1,000 companies now realize more than $16 million in annual savings by offshoring back-office operations, more than half of which is money saved on IT. The number will grow to nearly $30 million by 2010. This represents about a third of total potential cost savings, which could reach up to 17 percent of total G&A costs, they say."
"While trends such as political maneuvering, currency devaluations and labor supplies will affect the degree to which companies adopt offshoring in the near term, Janssen says the United States is in the frst decade of a "mega-trend" that will last another 10 to 20 years. There won't be a reversal until "relative parity in salaries" is attained. "
(could this mean that our paychecks need to become smaller?)
That's justa couple sources although there's more than 11 pages in a google search.....