A new study by the Hackett group indicates that even more jobs are at risk to offshoring than I have previously reported. Hackett is indicating that 750,00 more IT and Finance jobs will be lost to offshoring between now and 2016.
The good news? This offshoring trend will begin to decrease by 2014 and will actually hit zero jobs lost to offshoring by 2022. Why will this happen? Because corporations by that time will have run out of jobs that they can move offshore. Offshoring and Outsourcing aren’t the only reasons we are losing tech jobs here in the US. Automation and and productivity improvements will have accounted for the loss of 2.2 million IT jobs between 2006 and 2016.
The numbers above are based on a survey of 4700 companies with annual revenues that exceed 1 billion dollars. With this in mind these numbers are really understated since there are thousands of corporations that have revenues in the hundreds of millions.
The IT job landscape will continue to be fluid and hard to navigate due to technological change, Offshoring and Outsourcing, and Automation. Even when offshoring and outsourcing decrease by 2022, corporations are going to be under heavy pressure to cut costs in other ways. Expect to see a ramp up of automation projects and business process improvement projects that will continue to put pressure on well paying service jobs. This is why I believe IT’ers need to grab the bull by the horns and come up with alternate methods of generating income.
I have been recommending Internet Marketing for a number of reasons, first, the skillsets required in each are compatible, second, even though IM is subject to same issues noted above, you are in charge of your own destiny and are more flexible as an individual than if you worked for a corporation. In fact when it comes to automation, the independent IM’er will be a beneficiary. Same for offshoring, the successful IM’er can begin to offshore simple and repetitve tasks to low labor countries. It really comes down to this, do you want your financial fate in the hands of corporations that could care less about your financial well being, or in your own hands.