Effects of Outsourcing Companies Positions to Low Cost Countries Part 5

Depleting IT Talent Pool in USA:

The reports also discusses about the rising number of job protection groups, some of whom have websites; although these groups are trying to bring into focus the job loss and economic hardships caused to the American workers by outsourcing, some of their sites have included racist and biased remarks. And instead of using reasons they are resorting to insulting the foreigners who are taking their job overseas.
                                                                                                                         
Having discussed in length about the issues in outsourcing like security concerns, questions on job loss, depleting talent pool in America, and others, we now move our discussion to the outsourcing destinations and the IT infrastructure in those destinations. Within companies outsourcing destinations India and China have emerged as the leading destination IT job outsourcing. For out study we did an analysis of China as an outsourcing destination.

Although the Chinese market is promising it is suffering from some serious problems like the lack of English language proficiency among the programmers and managers, the Chinese companies do not have established quality control procedure like their Indian counterparts. Also the large problem of software piracy in China is not helping it to become a credible destination for software development. The Chinese government is launching programs to encourage and develop the software industry. But it does not have a good international image because of its un-democratic style of governance and many European companies and US companies are hesitant of doing business in China because of this. Although China has a large supply of IT professionals, those qualified in software engineering and software are very limited because the Chinese universities still emphasize the traditional engineering fields like mechanical engineering and electrical engineering. Also, China has made great improvements in the telecommunication infrastructure but the developments are concentrated in the big cities and near the costal regions. The heartland and the rural areas are still far behind. This limits the Chinese market for software sales and development. We can see that China is a promising destination for IT outsourcing, but then it has some problems too. The country is trying to take the position India has in the outsourcing market, which it may be able to if we look at the IT infrastructure and other surrounding issues affecting IT development in the South Asian market.