Some offshoring tidbits that I have come across recently:
- IDC is predicting that by 2007 nearly 1 out of every 4 (23%) IT jobs in America will have been moved offshore and performed by non-US personnel. For 2003 the figure is 5%.
- EDS, one of the largest technical services organizations in the world, is planning on cutting 5200 jobs in America and Europe next year while at the same time hiring 5800 new personnel in offshore locations like India, Brazil and Ireland.
- AOL recently admitted to opening an office in India to begin offshoring some of its development activities. In the same breath, they announce the layoff of 450 personnel in their California offices.
- Cognizant, another large US-based technology services provider with 9000 employees, announced recently that it plans to add roughly 4000 new employees in 2004. Good news, right? Except 2/3 of those new jobs will be in India.
- Google: Opening first office in India in 2004, and sending 100 jobs there. That's 10% of their current workforce. Google says the move was not motivated by the need to save money, but by the need for India's engineering talent. 3 years ago we'd buy that, but not now when a good chunk of the United States' high tech work force is out of work.
- Hewlett Packard: Laid off 4800 people in 2003, yet increased headcount in foreign offices in India, China, Poland, and the Phillipines. HP has eliminated 16,000 positions in the last 18 months.
- Oracle plans to double the number of engineers they currently employ in India, taking the number to 6000.
I could go on and on (and on!) about recent offshoring activities by major US companies, but I think I've depressed my readers (and myself) enough for one day.
I'll try to track down some good news for my next “Job Matters” posting, but that seems to be much more difficult to find these days.