Software Outsourcing And Its Future

Software outsourcing and its future
A report by research and consulting firm Forrester Research mentions that,​ jobs which are lost in​ United states because of​ software outsourcing are primarily low salary IT jobs .​
These jobs are like software programming or​ computer support specialists or​ computer operators .​
But on​ the​ other hand,​ high end high paying jobs like system analysts,​ network analysts and research analysts have seen continuous and stronger growth .​
Jobs in​ this niche market is​ growing steadily at​ the​ rate of​ 4 to​ 5% every year .​
These jobs which require stronger domain knowledge and knowledge of​ internal working of​ IT systems and business process are difficult to​ software outsource.
Which jobs will not get affected by software outsourcing
Jobs for software engineers for the​ position of​ system analysis and application development implementation are also growing at​ the​ rate of​ 6% a​ year .​
This is​ because,​ though software outsourcing can be done to​ India or​ other offshore software development locations,​ customers require in-house staff for customization and maintenance of​ purchased software .​
Why Software outsourcing will decrease
Report also mention that,​ attraction of​ cost saving in​ software outsourcing is​ yet very high and because of​ that,​ increase in​ jobs like software programmer will be very minimal .​
Also,​ because of​ very low increase in​ software programming jobs,​ salary rise will also hardly 1% in​ next few years .​
Salary of​ computer operators and database administrators will also grow at​ barely 1% rate .​
On the​ other hand,​ report also mentions about jobs which will have highest salary rise .​
Salaries of​ computer research scientists and information system managers will have highest growth which will be around 3.5% every year .​
While salaries of​ analysts and system administrators will grow at​ the​ rate of​ 2 to​ 3% every year .​
Conclusion about offshore software development
Report concludes with note that software outsourcing which has major costs saving today will decrease by 2008 .​
Because in​ US salary rise will be very less .​
While in​ India and other offshore software development destination,​ because of​ lack of​ availability of​ resources,​ salary rise will be very high .​
This will decrease the​ difference between salary of​ Indian and US software engineer and eventually decrease costs saving .​
So many companies will prefer in-house resources rather then software outsourcing.
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