International Outsourcing in the Information Technology Industry: Trends and Implications

This paper reviews trends in the use of international outsourcing in the Information Technology (IT) industry and explores implications for the U.S. workforce. Workforce employment projections and the trend for globalization in the IT industry are analyzed. An analogy is developed between current trends in IT workforce and the globalization of the auto industry during the latter part of the 20th century. The conclusion is that recent dips in U.S. IT employment may represent more than a transitory reflection of current economic conditions. International IT providers may be capturing a permanent share of U.S. IT expenditures and thus reducing the long term need for U.S. IT employment. IT industry and educational institutions need to plan accordingly for these new global workforce realities