Software outsourcing and its future

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The Future of Software Outsourcing


Overview


A Forrester Research report highlights that the software outsourcing trend in the United States mainly impacts low-wage IT jobs. However, high-paying positions like system analysts and research analysts are thriving, growing annually by 4 to 5%. These roles demand extensive domain expertise and are less susceptible to outsourcing.

Unaffected Jobs by Outsourcing


Positions for software engineers in system analysis and application development are increasing by 6% yearly. Despite outsourcing to countries like India, companies still require in-house personnel for software customization and maintenance.

The Future of Software Outsourcing


While cost-saving remains a significant driver for software outsourcing, the growth in software programming jobs is minimal, with salaries expected to rise by only 1% in the coming years. Similarly, pay for computer operators and database administrators will see a marginal increase.

Conversely, roles such as computer research scientists and information systems managers will enjoy the most significant salary growth, around 3.5% annually. Analysts and system administrators can expect a 2 to 3% yearly salary increase.

Conclusion


The report anticipates a decline in software outsourcing by 2008. As salaries continue to rise slowly in the US and increase significantly in countries like India due to resource scarcity, the cost benefits of outsourcing will diminish. This trend may lead companies to favor in-house resources over outsourcing.

For further details, visit [TatvaSoft](http://www.tatvasoft.com/outsourcing/2005/06/software-outsourcing-and-its-future.html).

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