U.S. Tech Jobs Moving Offshore

Summary

Recent reports indicate that U.S. employers will move about 3.3 million white-collar service jobs and $136 billion in wages overseas in the next 15 years. IT giants such as Microsoft, HP and IBM are leading the way. The results are clear for U.S. technology workers — increased job insecurity, lower wages and fewer benefits.

Some Facts Behind IT Offshoring

What Gartner Inc. Says:

• “One out of 10 jobs in the U.S. computer services and software industry could shift to lower-cost markets such as India or Russia by the end of 2004. ”

What Microsoft Says:

• “Two heads are cheaper than one.”
• “Pick a project and outsource today.”

What Hewlett Packard Says:

• “We’re trying to move everything we can offshore,” Forbes quoted Hewlett Packard Services chief Ann Livermore as saying.
• “We’re aggressively realigning our resources.” HP already has a presence in India and is also looking to China, which company officials expect to soon rival India for outsourcing services.

What IBM Says:

• “Our competitors are doing it and we have to do it.”

What Forrester’s Research Says:

• 3.3 Million service jobs will move overseas with the technology sector leading the way.
• $136 billion in wages will move to countries like India, Russia and China. Up from $4 billion in 2000.

What the Economic Policy Institute Says:

· “Research shows that the 15 to 25 percent decline in wages can be traced to the effects of globalization,” says Jared Bernstein, a Washington D.C-based economist for the Economic Policy Institute.

· “This used to be true of lower wage workers, but now we see it occurring with IT workers. “My best advice is for IT workers to organize,” Bernstein says. “What tech workers lack is bargaining power that protects them from overseas competition[MB1] .”

What Alliance@IBM/CWA Says:

• We must raise our collective voice around this issue. If we organize, both at the legislative level and in the workplace, we can have a say in our economic futures.
• We must engage our elected officials to get their support for keeping jobs in the U.S.
• We must let IBM know we will not stand idly by and let our jobs disappear.

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