BusinessWeek points to "spin" in the Commerce Department's recently released study on the impact of offshoring on US jobs. Not sure why they felt the need to white wash the report - the staff research - slides here - was pretty balanced. Yes, it shows some job losses in certain categories (which would have happened anyway after the Y2k, ERP, ebiz run-up), but overall the IT employment and wages have not been substantially affected (see slides 39-43)
The figures reflect what has been happening at most of my clients. Offshore vendors are replacing US outsourcers and contractors, not employees. With growing offshore rates, the only way they will threaten IT employees is if they can come in at $ 30 or so an hour (because buyers have to factor additional costs of knowledge transfer, risk management etc - see "The economics of "cheap"), That is a lot harder for them to deliver since most use a 30% onsite to 70% offshore ratio, and on site rates are often in the $ 60+range. Continued bad news for the EDSs and the Accentures (though they are learning to blend their own offshore resources); more relaxing (though not the rip roaring good times of the 90s) news for the employed network specialists and DBAs.
