Outsourcing Software Development

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Software Outsourcing Terry Jefferson
MGIS 505 Writing for Research December 6, 2011

Abstract

This research accessed the growing trend among U.S. companies to not only do business globally, but also employ people globally for lower wages.The study farther takes on an atmosphere of how Americans believe that jobs are being outsourced internationally to countries for profit, and that this is one of the reasons for our high unemployment in the United States.As a result, to ensure survival in a capitalistic market, U.S. companies have tried to keep pace with technological changes and competitive pressures by various means, including outsourcing by software jobs.It is recommended that with increasing competition both domestically and internationally that the U. S. companies take a closer look at how this practice is depleting many software jobs inside of the United States.

Introduction

Software Outsourcing

Terry Jefferson

Introduction

The impact of software development of global outsourcing has many economic and social impacts. Economically, India is thriving with Gross Domestic Product growth accelerating exponentially including having the potential to achieve double-digit growth. (McManes, 2003) Mean while, in the United States, the numbers relating to technology jobs are quite the opposite. Most figures suggest that by 2015, roughly 3.3 million business-processing jobs will have moved abroad.As of July 2003, around 400,000 jobs already have been outsourced. (Grove, 2003) India's strength in the software sector with its pool of well-qualified, English speaking software engineers has made India into the outsourcing destination for U.S. companies looking to outsource their computing sector. Nasscom, the association of Indian software companies, claim the volume of work outsourced to India has increased more than 50% since 2003, and Indian IT sector's sell to other countries at the end of March 2004 was $12 billion.

Many experienced software programmers of large software companies are being laid off because of outsourcing. Despite many Americans dedicating 10 years or more working for a company, countless numbers have recently received notice that they will soon be laid-off. Before leaving, however, the company instructs them to train their replacements, a programmer overseas. The software company realizes that the employees job duties can be achieved by overseas workers earning significantly lower wages for the same (or better) quality of work. Unfortunately, the Employees are faced with the difficult decision of training their own replacements. Based on employee values, must they dutifully perform these instructions and train the overseas programmer? Why did the company choose to outsource the job if the employee is capable of the

Job’s requirements and neglect their loyalty and contributions to the company? This particular example introduces the ethical issues involved with outsourcing software jobs.

For decades, U.S. companies have been experiencing an era of tremendous economical growth, largely due to the rapid developments in technology .Consequently, to ensure survival in a capitalistic market; U.S. companies have tried to keep pace with technological changes and competitive pressures by various means, including outsourcing a great quantity of technical jobs. With increasing competition both domestically and internationally, U.S. companies had been sending many software jobs outside the United States. This paper focuses on the outsourcing of software jobs, and analyzes the "Global Workforce’s” reversal of technical jobs, a new growing trend among U.S. companies.

Trends in Outsourcing Software Jobs

The Internet glory years as we closed the decade, (infamously known as the "Internet Bubble") could not get enough of software engineers. New graduates from American colleges and universities found themselves having multiple job offers even before...
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