American Sentinel University study finds low-level Information technology jobs still migrating offshore but high-end IT positions are growing at rates common in the 1990s boom.
June 2, 2006
Englewood, CO -- Fears of offshoring voiced in the past several years have proved to be overblown, for the simple reason that most of the job losses in high-end IT occupations were cyclical rather than structural. "Offshoring of Information-Technology Jobs: Myths and Realities," a study by American Sentinel University, finds that IT positions requiring advanced degrees and business knowledge are growing at a pace on par with the boom years experienced in the 1990s.
A close look at employment trends during and after the 2000-01 recession shows that, with few exceptions, most of the job losses that stoked offshoring fears were cyclical in nature and have been recouped. IT offshoring risks are limited to low-end occupations that are labor intensive, easy to codify, or require little face-to-face contact.
"Studies from consulting groups during the stagnant job growth years of 2002 to 2004 stoked very pessimistic views of the future for IT professionals," says Jeremy Leonard, Chief Economist at American Sentinel University, and author of the study. "Once the current economic expansion took hold, however, we found that the 2000-02 job losses had little, if anything, to do with jobs moving overseas. Software engineers in particular saw a phenomenal turnaround in job fortunes, swinging from 4 percent decline to 25 percent growth."
The study concludes that while offshoring of easily duplicated job functions will continue to migrate offshore, there is thus little direct job risk for those considering a career in computer engineering or systems analysis.
American Sentinel University (www.AmericanSentinel.edu) is accredited by the U.S. Secretary of Education-recognized Accrediting Commission of the Distance Education and Training Council. DETC, the premier global accrediting association for distance learning institutions, is also recognized by the Council for Higher Education Accreditation.
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