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IBM sending engineer jobs to India
December 15, 2003
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IBM
is planning to move up to 4,730 programmer jobs
offshore, the Wall Street Journal reports
today.
The plans are still under debate, according to the
newspaper, which cites internal documents, but involve
Application Management Services group, part of IBM's
Global Services operation.
As is the modern fashion, a final humiliation will be
expected of the doomed US workers: they'll be expected
to train their offshore replacements.
While the trend to move backoffice functions such as
administration, accounting and call center support to
cheaper locations such as India and China has been
evident for some time, only this year have CEOs
targeted trained IT professionals. Estimates suggest
that one in ten white collar jobs Stateside will be
sent offshore by the end of 2004.
But is this the whole picture?
The CEO of a privately held software company told the
Wall Street Journal recently that in contrast
to IT jobs which demand 'real' engineering skills,
such as the C++ programming language, 'dot.com' jobs
involving web design or database work were overpaid.
He said he could save money and employ more US
citizens: resulting in a net gain for the economy.
However, publicly quoted companies such as IBM are
under pressure simply to return higher profits to
their shareholders, and can't afford to be so
altruistic.
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