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Study: Offshoring impact on U.S. jobs overblown
MANHASSET, N.Y. Fears of offshoring in recent years are overblown because most of the job losses in high-end IT occupations were cyclical rather than structural, according to a study by American Sentinel University.
The study, titled "Offshoring of Information-Technology Jobs: Myths and Realities," 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.
Also, the study found that offshoring risks are limited to low-end occupations that are labor intensive, easy to codify, or require little face-to-face contact. Many of the job losses following the recession earlier in the decade have been recouped, the study said.
"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 to 2002 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.
A full copy of the report can be found at the website.
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