1 Dec 2002 11:15
REPORT:India to gain from US IT services exodus
Manjunath, Bharadwaj (Cognizant <MBharadw@...>
2002-12-01 10:15:52 GMT
2002-12-01 10:15:52 GMT
India to gain from US IT services exodus S. Rajagopalan Washington, November 30 India could be a major beneficiary of a massive exodus of services industry jobs from the US over the next 15 years. A report by Forrester Research estimates that 33 lakh American services industry jobs will move to countries such as India, Russia, China and the Philippines. Cumulatively, the jobs will represent $136 billion in wages. The information technology industry, which accounts for about 10 lakh jobs, will lead the exodus, says the research firm based in Cambridge, Massachusetts. Its message for American IT workers is to upgrade their skills - or sink. An Internet journal quotes Forrester's group research director John McCarthy as saying that the base and middle level IT programmers in the US will have to make a transition to senior level jobs as their present jobs will be "shipped out of the country". "The people who make this transition will be people who can manage these offshore projects... IT workers will have to become more business-centric and not just stay in their little technology cocoons," says McCarthy. India has been identified as one of the main countries absorbing IT work from the US. McCarthy, who's in India, has been quoted by Internet.com as saying that it is not just cheaper labour that is prompting US firms to look outside. They are getting better quality work offshore. "India is a culture more focused on quality and process than America is. They tend to be much more disciplined. They've done the most to turn IT development away from a mystical black art to a real business process... 'Just wing it' is not part of the Indian culture," says McCarthy. Not everybody believes in the exodus theory. Humberto Andrade of Technology Business Research at Hampton, New Hampshire has a different view. According to him, the high-end, value-add jobs will be retained by US workers. The bulk of IT jobs that may move offshore will be confined to the "low-end, time-consuming" parts.
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