IT outsourcing by US to hit $79 billion this year

[ChromeFoundry]

Source: Daily News and Analysis/India

Tuesday, April 13, 2010 4:26 IST

New Delhi: The US IT services market will return to its pre-downturn growth rate of 5% in 2010, going by the strong IT hardware demand seen in the last two quarters, Forrester Research has predicted.

The $85 billion US IT services market had shrunk 5% in 2009, affecting the growth rate of the $40 billion Indian IT and outsourcing industry.

“The cutbacks in tech purchases were in many cases driven by fear. Fear that the economy was headed toward a multiyear recession... and fear that firms would not be able to borrow from banks or the credit market if they needed, resulting in the drive to hoard cash and slash capital investment... As fears ease and prices rebound, the pent-up demand in those industries for IT goods and services will bounce back in 2010,” Forrester said in its report on the US IT industry last week.

The strongest segment in IT services will continue to be IT consulting, which grew even in 2009 as companies struggled to cut IT costs, followed by hardware support and system integration.
IT outsourcing, which grew from $75 billion to $76 billion in 2009, will hit $79 billion in 2010, Forrester analyst Andrew Bartels concluded.



Read more: http://www.dnaindia.com/money/report_it-outsourcing-by-us-to-hit-79-billion-this-year_1370664

[OhioChick]

1. Disgusting. n/t

[peacebird]

2. outsourcing to India is likely taking our software test department this year

they are much less expensive... The first round of layoffs will come in May. Everyone in my department got a "letter" which asked us if we want to volunteer to lose our jobs - the benefit was one weeks pay for every year of employment. No one has accepted that kind offer - :eyes:

[RM33]

3. IT is not the only field that is outsourced.

There is a saying in Wall Street. If you can work from home, you can work from India.

IT is not the only thing that is being outsource. Accounting, finance, billing in fact, most jobs are being outsourced.

The worst is that now companies bring Indians with work visas, they set these guys up in an apartments and the work in NYC. Indian nationals take American jobs. They don't even outsource anymore. They just do the work right here in the US.

[Commie Pinko Dirtbag]

20. "The worst"?

I would think that, since the difference is them being physically in the US, at least they'll spend a good part of their wages in the US. Not to mention taxes.

[avaistheone1]

4. Shameful.

We are never going to get back on our feet as a country with this offshoring going on. Obama and the Congress can never create jobs as fast as we lose them to offshoring, nor does our government have the money to create jobs on that scale.

These corporations are sick, and they are killing our country and our people.

[RockaFowler]

5. We just outsourced Accounting functions to India

Accounting Functions are now in India. All payments go through India. And there is nothing we can do about it. The company F**ks up everyday, but my company is somehow saving money. What a slap in our faces.

[jody]

6. From the BuzzFlash mailbag, "They kept taking"

The BuzzFlash Mailbag, August 7, 2003

They kept taking

First they took our steel mill jobs, and the people ignored the cries of steel mill workers.

Then they took our textile jobs, and the people ignored the cries of textile workers.

Then they took our automotive jobs, and the people ignored the cries of automotive workers.

Then they took our high-tech jobs, and the people ignored the cries of high-tech workers.

Then they bribed the people's representatives in Washington and the people ignored their loss.

And the only jobs left were in the U.S. Foreign Legion, defending the worldwide assets of those who had taken the people's jobs and stolen the people's government.

The people shouted, "We the people are dead, long live the corporation."

And the high priests of Mammon laughed about how easy it was to destroy the world's longest running, most successful experiment in democracy.

And the thirsty and hungry and sick and imprisoned and naked prayed to Mammon to have mercy on their wretched. miserable bodies because the people had lost the very soul of democracy,

"And it repented the Lord that he had made man on the earth, and it grieved him at his heart." (Genesis 6:6)

[msongs]

7. think of all the income taxes etc the US govt will be losing for deficit reduction lol nt

[high density]

8. It's unsustainable.

The people with three letter titles can't possibly spend enough money to keep our economy afloat. These companies are going to have to follow all this money offshore in the coming decades. There will be no US economy left.

[earcandle]

9. These are jobs we could have done! Who is giving our jobs away? Can they be prosecuted? Boycotted?

[jody]

12. No one gave "our jobs away". They are being performed at cheaper cost so consumers can enjoy low

prices.

That's the simple result of a global economy.

The alternative is protective tariffs that protect jobs and increase prices however the US is not self-sufficient in all raw materials.

It would be interesting for congress to implement protective tariffs and see what might happen.

[devilgrrl]

13. How is one supposed to buy cheaper products unemployed with less money?

:popcorn:

Not that I disagree with your point.

[jody]

14. IMO no one most of all politicians have an answer to your question. When there is an in-balance

between labor markets in countries, work will flow to the cheaper markets whether it's auto jobs from Detroit MI to Montgomery AL or construction workers from Mexico to the US or IT work from the US to the Far East.

One thing I do believe, borrowing money from China et al and giving it to financial institutions is not the answer or even part of an answer.

[earcandle]

17. We should be loyal to our own people first. Before profits are considered. And make products that

people can't get anywhere else and sell them at a high price. 

IMNSHO

[jody]

18. What products do we make that "people can't get anywhere else" at a cheap price? Very few and if one

is developed, in a short time a suitable, cheap substitute will be available on the global market.

The days of US dominating even a small segment of the global market for very long are gone and may never arise again.

Can the US survive as an isolated nation when we are absolutely dependent upon other nations for such things as critical minerals needed for manufacturing a number of products essential to any modern economy?

[PSPS]

10. That's $79 BILLION DOLLARS stolen right out of the pockets of US workers, you know.

[Newsjock]

11. Feeling quite powerless over the whole thing

A certain technology company spent the last couple of years bringing lots of H-1Bs to its U.S. headquarters. Then, folks started complaining. Now, there are hardly any new H-1Bs coming in. Why? The company has laid off dozens of engineers and sent the jobs to a subsidiary in Bangalore.

We're screwn either way. If we shut down the H-1B program, corporate America will just ship the jobs out of the country.

This requires some bad-ass, hard-hitting legislation from our "fierce advocates" in Congress.

[jody]

15. Do you include "protective tariffs" in your "hard-hitting legislation"? How will your new bills

improve the US balance of payment that is over half a trillion dollars per year?

[1776Forever]

16. I have known a lot of people in the IT world that have lost their jobs - disgusting!

I try to buy US made goods whenever I can but it is getting hard. Ed Schultz has a guy on that has a book and website about USA made goods. Here is the link:

http://madeinusaforever.com/

[MindPilot]

19. Just yesterday the city of San Diego outsourced it's helpdesk functions

A few dozen more unemployed locals, but who's counting?

[City Lights]

21. Imagine the money corporations would save if they outsourced upper management.

Corporate Uhmurika disgusts me.