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November 13, 2003

Over 40% of software development is outsourced : META Group


An average of 41% of new IT development activity is now outsourced, according to IT research firm META Group. Last year, the average percentage of new development from outsourcing providers was 35.9% worldwide.

Though they haven't been as dramatic (or gotten as much ink) as Forrester Research's "3.3-m US jobs to be lost due to offshoring" report, META Group pronouncements too seems to have an anti-India slant. The latest press release for example, talks about India getting a lion's share of the offshore pie despite "(its) political instabilities", "the highest (IT Staff) turnover rate", etc.

"India continues to be the preferred offshore country, with more than 500,000 knowledge workers, but other countries are competing -- Russia, the Philippines, Ireland, Israel, and China are the up-and-comers to watch," the release adds. Sure.

And then there is the expected words of sympathy for the sad plight of US IT workers. "There is no doubt that 2003 has been a terrible year for IT workers," META Group Executive Vice President Dr. Howard Rubin says in the release. "Staff cutbacks and the unavailability of new positions have sent many IT professionals looking for new career options," he adds.

Let's hope 2004 is the year in which Forrester, META Group and Co. learn to stop fighting what's irreversible and stick to providing figures without any slants.

Click Here to read the full Meta Group press release.