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Software Outsourcing


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Within the last two years the shortage of over 475K programmers in US in 2001 turned into jobless situation in 2003. Information Technology within these two years has lost over 341K jobs. This means that vast majority of the lost jobs moved oversees to outsourcing companies. The situation originates from the fact that the cost of each employee in the information technology tended to be too high, averaging $170/h. Attempts to cut the cost hiring resources directly on H1 visas decreased only per hour rate share in the above figure from $50/h to $25/h or even less in average. Outsourcing is the only way out of the situation. Smaller companies have to outsource offshore programming directly. To get all the benefits and to avoid the problems is the goal of this newsletter. Even experienced managers underestimate differences in management between local US or European companies and offshore com

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