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Outsourcing:
Trends in Information Systems
Mike Ng
State University of Albany
Outsourcing:
Trends in Information Systems
ABSTRACT
This paper analyzes current trends within the world pertaining to outsourcing of information systems. Currently, India is the key leader amongst outsourcers, but in concern is how all the other countries coexist in the current and future makeup of outsourcing trends. Outsourcing is nothing new and will continue to be an impact on the world and global job markets. This paper presents, to future IT professionals and those currently engrossed in the field, what the status of affairs on global outsourcing is at this time and to what extent outsourcing will develop as we progress, along with inherent legal issues varying from country to county.
INTRODUCTION
"More than 50% of firms are expected to use IT outsourcing in 2006" (William R. King. 2004, pg. 83), chances are you're a part of the IT world and fear for your own job security or have already been phased out in order to "cut costs". Maybe outsourcing has not become an issue for you yet, but based from the data polled by Cornell University 400,000 jobs were lost to Mexico, China, India, and other Asian nations alone in 2004, with expectations to rise as high as 3.3million by 2015, which for mathematicians is 8.25 times more (Sen, 2005). Growth rate on offshore projects is estimated to rise by 30-40 percent over the next 5 years (from the current 2005), not accounting for the 70 percent of the top 1000 largest companies as researched by McKinsey Global Institute (Sen, 2005). Along with ...