In present economy there have been many job losses not only in IT but in other sectors also. IT industry in US has reached to its maturity. It may not see any more exponential growth in US market. Now the organizations are looking for the most optimized use of IT in their business.
10 years ago the people who supported the idea of offshore/outsourcing are now arguing aginst this. Though outsourcing has definitely given various advantages to many of the corporations not only in terms of IT cost but with the growth in the sale of their products overseas.
If you look at the CocaCola revenue contribution only 20% comes from US. GM and Ford have lost its market share in US but have gained in India and China. It is mainly because of IT outsourcing. It was a win-win situation for the business.
With the current economic crisis, the companies are forced to further reduce the IT cost. Now there is trend when companies are talking about the gain upfront before they outsource. This is called as outcome based outsourcing. In the latest news articles India's Wipro and Infosys have accepted that their 30% of oursourcing contracts are not only based on service level agreement but also on outcome based agreements such as increase in sales and profit margins.
This will force even the India and China based companies to find alternative cost saving measurements either in terms of lower wages or improved performances.
In coming years US may see more IT job losses and this time it may be not be only in programming and operations but in high value like Architects and software designers.
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