| Offshore Outsourcing and Employees
Of course, arguably the biggest group of individuals impacted by the increasing trend of offshore outsourcing is the employees. These employees must deal with the fear of job insecurity as more and more technology jobs in the information technology (IT) industry are being exported to foreign countries. These employees face the insecurity of working in an industry that is slowly losing its roots in America.
While it has long been suspected that technology workers were losing both higher wage salaries and job positions, there is now increasing proof that this is quickly becoming reality. In fact, the bonus pay that many IT industry workers receive upon certification has been steadily declining since the increase in offshore outsourcing of domestic jobs. This certification that many IT workers choose to seek is demonstration of the qualifications technology workers should have. But these qualifications come with a price for companies. The higher skill level of many IT industry workers carries a heavier price tag. Companies must pay these workers more for their competency and qualifications.
The employees begin to suffer when companies cannot afford to pay these higher price tags and begin to cut their salaries or ship their jobs overseas. While the companies save money, IT industry workers who have undergone extensive training and are highly qualified in their positions are left without jobs. It has been estimated that over 560,000 IT industry jobs were lost between 2001 and 2002. This is almost 10 percent of the IT industry workforce, a staggering number for the employees that have been impacted by offshore outsourcing.
Companies may not be saving as much money as is popularly conceived. For example, labor and travel costs may cut down on some of the savings of shipping jobs overseas. However, the savings are still significant enough to companies for them to remain price competitive. This leaves the companies with the benefit of producing the same goods and services. It also sometimes leaves the employees who have worked hard to gain certification out in the cold.
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