The impact of offshore outsourcing on IT workers in developed countries

Offshore outsourcing is being viewed by management of various companies as an attractive operation alternative and as an opportunity to control costs to contract out its IT operations. An offshore outsourcing arrangement is a single decision, the evaluations to outsource and to go offshore are actually made separately. The offshore insourcers typically are multinational companies, which have the means to set up regional branch centers to exploit lower cost and other resource advantages in different countries. The major forces behind this model can be articulated along technological and economic dimensions. Different companies now can outsource various projects either locally or globally with the assistance of appropriate project management. Offshore outsourcing will remain a viable option on the corporate strategic agenda as global market dynamics keep driving companies to acquire IT services from locations that provide the most cost-effective solutions.