editor’s;letter

DOI: 10.1145/1735223.1735224
Moshe;Y.;Vardi

Globalization and Offshoring of Software Revisited

In 2003–2004, the computing community in the U.S. suddenly realized it had lost its “monopoly” on software. India’s IT industry had been growing at an exponential rate for a few years by then, driven by offshoring and outsourcing of IT services.

The bottom line, therefore, is one of a thriving computing field, with projections of continued growth for years to come. The difference is the field is now global, and so is the competition. Such competition is moving up the skill ladder. Companies, including start-ups, are learning how to access and use higher skill levels in developed countries. We are seeing new research labs and increasing national research investment in India and China. We are also seeing an increase in the total worldwide investment in research and a wider distribution of research activities around the world. These are all signs of a thriving global field, with intense global competition.

Can offshoring be ignored? Absolutely not! We must continue monitoring employment and wage trends, as well as global R&D trends, to assess its ongoing impact. To stay competitive in a global IT environment and industry, countries must adopt policies that invest in R&D and foster innovation.

Policies that improve a country’s ability to attract, educate, and retain the best IT talent are critical. Education is a primary means for both developed and developing countries to mount a response to offshoring so their work forces can compete globally for IT jobs.

So how do countries and individuals thrive in a global computing world? Invest, innovate, develop, produce, educate, compete. Simple.

 

Moshe Y. Vardi, eDIToR-In-ChIeF