The Hindu : Euphoria over IT offshoring premature?

Online edition of India's National Newspaper
Thursday, Nov 20, 2003

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Business

Euphoria over IT offshoring premature?

By Our Staff Reporter

BANGALORE NOV. 19. Contrary to what some `experts' have been telling their Indian IT clients recently, a failure in job recovery in the U.S. may actually mean IT offshoring to India or other destinations will be a difficult choice to corporate America to make, said a visiting U.S. IT trade body representative.

"Even the most optimistic people feel that no more that 7 to 9 per cent of IT jobs would be offshored,'' said Harris Miller, President, IT Association of America, here on Tuesday evening. He was talking to Indian IT industry representatives at a CEO Forum organised by ITAA's Indian counterpart, the National Association of Software ServicesCompanies.

Mr. Harris said 7 to 9 per cent of all IT jobs would be offshored in the next decade.

Rising unemployment in the U.S. would have an influence on this. Recent positive figures about a U.S. recovery had not yet shown that a job recovery was underway too.

While the IT industry may grow by as much as 4 per cent next year, it was to be seen if it would be matched by a similar growth in jobs in the U.S., he said.

U.S. unemployment rates were at 6 per cent and IT unemployment even higher, compared to zero, three years ago, he said.

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