Top Three Technology Jobs In Danger Of Offshoring

A new study released by Careerbuilder.com and the Wharton School of the University of Pennsylvania identified the top three technology jobs at risk for moving offshore. The study titled Jobs Beyond Borders, includes research from 3,000 hiring managers and HR professionals as well as 6,700 U.S. workers. The study indicated 32% of computer programmer and software developer jobs and 16% of system analysts jobs are at risk. According to the study, “more firms are offshoring high-wage, high-skill jobs that were once though to be immune to global competition.” In fact, 28% of employers have already offshored high-skill services positions overseas to third parties or foreign affiliates. 69% of employers who offshore believe high-skill services positions are more likely to be offshored than low-skill jobs. The Ecomomics of Offshoring Technology The majority of employers surveyed listed saving money as the reason for offshoring jobs. According to the study, nearly half of the employers who did offshore information technology jobs reported saving an average of $20,000 per person. Additional reasons for offshoring included the availability of skills and plans for expansion with a particular market. Of the workers who were displaced by offshoring, only one in five were reassigned within the company. Of those who were let go or left the company, 81% went to another employer who was not aggressively offshoring. Matt Gerguson, chief executive officer of Careerbuilder.com said in order for most employers to compete with other companies worldwide they offshore jobs. “Among employers who offshore, half said they believe offshoring is necessary to compete in a global economy and 15% project more than 20% percent of their jobs will eventually be sent overseas.” Prasanna Tambe, a doctoral student at the Wharton School, points out that while offshoring impacts the rate of turnover, the percent of displacement due to offshoring isn’t as big as you’d think. “Although offshoring has already had a significant impact on some U.S. workers, offshoring-related displacement currently accounts for a relatively small proportion of annual U.S. employment turnover, which can be close to 40 percent per year,” says Tambe. Still a good market for domestic talent While high-skilled jobs are at risk for being offshored, Gerguson is positive about the U.S. job economy. “One-in-four employers who offshore said it has enabled them to create a greater number of better jobs here in the U.S.,” said Gerguson. While the Jobs Beyond Borders study suggests computer programmer, software developer, and system analyst jobs as the most at risk for being offshored, the level of demand for these skills is so great that U.S. workers in these categories may not be facing increased risk of unemployment. A new a survey by Baseline Magazine identified the top technology skills in demand as those possessed by the three categories in the offshoring risk pool. Through analysis of recent employment studies and interviews with IT professionals and recruiters, Baseline’s top 10 list ranked senior level Java/J2EE and .NET developers at number one, suggesting that software developer jobs are one of the most in demand positions within the IT industry. Additionally, it is interesting that system analyst jobs are at risk, because they require one of the most in demand skills predicted for this year—troubleshooting and technical support skills. The bottom line is that even if your job is at risk of being offshored, there will always be other positions and skills in demand which can allow you to utilize your knowledge and expertise and help you become an asset to your employer.