Archive for the 'IT Outsourcing' Category

IP Addresses Are Personal Data

Thursday, January 24th, 2008

By Aoife White Associated Press BRUSSELS — IP addresses, strings of numbers that identify computers on the Internet, should generally be regarded as personal information, the head of the European Union’s group of data privacy regulators said Monday.

Germany’s data-protection commissioner, Peter Scharr, leads the E.U. group, which is preparing a report on how well the privacy policies of Internet search engines operated by Google, Yahoo, Microsoft and others comply with E.U. privacy law.

Scharr told a European Parliament hearing on online data protection that when someone is identified by an IP, or Internet protocol, address, “then it has to be regarded as personal data.”

His view differs from that of Google, which insists an IP address merely identifies the location of a computer, not who the individual user is. That is true but does not take into consideration that many people regularly use the same computer and IP address.

Scharr acknowledged that IP addresses for a computer may not always be personal or linked to an individual. For example, some computers in Internet cafes or offices are used by several people.

These exceptions have not stopped the emergence of a host of “whois” Internet sites, which allow users to type in an IP address and will then generate a name for the person or company linked to it.

Treating IP addresses as personal information would have implications for how search engines record data.

Google was the first last year to cut the time it stored search information to 18 months. It also reduced the time limit on the cookies that collect information on how people use the Internet from a default of 30 years to an automatic expiration in two years.

A privacy advocate at the nonprofit Electronic Privacy Information Center said it was “absurd” for Google to claim that stripping out the last two figures from the stored IP address made the address impossible to identify by making it one of 256 possible configurations.

“It’s one of the things that make computer people giggle,” the center’s executive director, Marc Rotenberg, said. “The more the companies know about you, the more commercial value is obtained.”

Google’s global privacy counsel, Peter Fleischer, said Google collects IP addresses to give customers a more accurate service because it knows what part of the world a search result comes from and what language is used — and that was not enough to identify an individual user.

“If someone taps in ‘football,’ you get different results in London than in New York,” he said.

The way Google stores IP addresses meant that one address forms part of a crowd, giving valuable information on general trends without infringing on an individual’s privacy, he said.

Google says it needs to store search queries and gather information on online activity to improve its search results and to provide advertisers with correct billing information that shows that genuine users are clicking on online ads.

Internet “click fraud” can be tracked by showing that the same IP address is jumping repeatedly to the same ad. Advertisers pay for each time a different person views the ad, so dozens of views by the same person can rack up costs without giving the company the publicity it wanted.

Microsoft does not record the IP address that identifies an individual computer when it logs search terms. Its Internet strategy relies on users logging into the Passport network that is linked to its popular Hotmail and Messenger services.

The company’s European Internet policy director, Thomas Myrup Kristensen, described the move as part of Microsoft’s commitment to privacy. “In terms of the impact on user privacy, complete and irreversible anonymity is the most important point here — more impactful than whether the data is retained for 13 versus 18 versus 24 months,” he said.

Neither of the search engines received a pat on the back from Spain’s data protection regulator, Artemi Rallo Lombarte, who criticized them for not trying to make their privacy policies accessible to normal people.

Their privacy policies “could very well be considered virtual or fictional . . . because search engines do not sufficiently emphasize their own privacy policies on their home pages, nor are they accessible to users,” he said, describing the policies as “complex and unintelligible to users.”

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How to succeed in the Offshore Software Development

Friday, January 18th, 2008

A Software Development model that emphasizes on global delivery of quality software build by talented pool of professionals from a development center that is located in a foreign land at a highly economical cost is called Offshore Software Development.

India, China, and Russia are the three leading countries that currently control the offshore programming market.

Today the very promising competition of the offshore software development asks for the best of resources and innovative strategies with brilliant business intelligence. These companies into offshoring try not to leave the smallest of the details which has been overlooked by other businesses to win client interest.

Huge cost savings, time optimization: there are several benefits but these opportunities and advantages in this nascent business are also accompanied by challenges. Though the software vendor has hi-tech professionals with the best of technical skills with delivering quality output, there are few challenges faced which cannot be overlooked. These challenges are communication gaps, non-clarity of the project status, improper estimation in terms of resources and budget therefore and of course cultural hindrances.

Cost cut without compromising on quality is the key objective for this business and to achieve this objective, there has to be a smooth coordination between offshore client and the software vendor. This should start with the best possible approach by both the parties the offshore client and the software vendor.

The most important aspect in the offshore software development other than the required technical skills is the smooth communication between the two parties. Seamless communication oils the project speed. The communication in writing, video conferences along with and apart the verbal ones is more constructive. This is accomplished by implementing the work-schedules that intersect the time-frames for both the countries. Generally the offshore vendor works in accordance with the client for the later’s convenience but it is better if you as an offshore vendor also have a local presence for the client. This is like an added privilege, since this strengthens the client’s confidence into the offshore vendor. This helps the client to approach the vendor easily.

Another very important factor is the Resource and Budget forecast for the project. The Technical and Business Analysts should take the following points into consideration:

1.       The risks involved in the undertaking the project and its measurement.

2.       Whether the rates quoted are in accordance with the requirements of the project.

3.       The terms of payment/billing: whether it should be hourly, weekly, per month or on the project completion, etc.

4.       Will the quality standards set by the vendor be able to meet in carrying out the project or quality would get compromised for quoting an attractive price.

5.       Double-Check for the specifications of the Project sent by client. Check whether there are any milestones in the project which has dependency on the client end. Check whether there would be any re-works or change-requests from client side.

Once the project starts, both the offshore client and the software vendor should coordinate on regular basis on the project flow. The communication has to be transparent between the both.

The offshore vendor must see that the project flow is smooth and the status is well communicated to the offshore client time to time.

This gives client a kind of satisfaction and confidence in the vendor’s work. Also, the vendor should target to complete every deliverable in the project in 80% of time committed. A buffer time of 20% of the actually committed is always good to balance if any sudden problems faced.

Also, it is better to have a single point of contact at both the ends to have a smooth and proper communication throughout the project development. But at the same time, everyone associated in the project should be aware of the communication going on between the two parties.

If you as an offshore vendor feel that any milestone in the project that puts a dependency onto client is approaching, you should intimate that to client at least 3 working days before depending on the weight of that milestone.

Though how much the project team strives to put up an error-free product, some problems or unpredictable issues may turn up and thus slow-down the project process. But these should be handled and solved with mutual cooperation and proper coordination from both the software vendor and the offshore client to achieve the objective.

Hence forth, to bring success to any offshore software development projects, it is the joint effort from both the ends that ultimately works out. But the most important factors here would be transparent and clear communication, proper forecast on resources and budget and smooth coordination on deliverables.

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Mobile Solutions Developer CellAdmin Launched the Jagango, a New Community Portal for Mobile Internet Sites

Tuesday, January 8th, 2008

Raanana, Israel (PRWEB) January 7, 2008 — CellAdmin, a developer of mobile content management solutions for operators and digital media providers, today announced the launches of Jagango, its advance and easy-to-use mobile internet sites creation tool with an inherent hosting and publishing facilities. People strive to share with others their ideas, photos, videos and music; and the notion that this user generated content should be available also to people on the go, is now resolved through Jagango, the ultimate tool for creating and hosting advanced mobile internet sites. No programming experience is required whatsoever and…it’s free!

With wealth of preset designs, in 5 simple steps and less time than one can imagine, anyone can create a personal mobile web site, accommodating multimedia content, as desired by site owner. After creating the site it is automatically stored on Jagango servers ready to be viewed by anyone who holds a mobile phone with Internet access (GSM, GPRS, HSDPA, etc.). So all is left to do is to invite people to visit the site created, by sending an SMS through Jagango sharing tool.

“Jagango is available through Jagango.com and soon will also be available through various online social networks site wishing to give their members a mobile presence,” said Pini Shmilovich CellAdmin’s CEO. “Jagango will also be offered to the members and subscribers of mobile network operators and media companies, who wish to have clearer role in the user generated content and social networking domains; while increasing their stickiness, customer satisfaction and revenues.”

“We are proud about Jagango, we succeeded to meet our nearly impossible goals - to develop a mobile sites development tool, to none developers,” said Barry Bazini, company’s founder and CTO. “I invite everyone to go to Jagango from any PC and see how easy and intuitive it is to create new site.”

CellAdmin will showcase its groundbreaking new product Jagango at the Mobil World Congress 2008, 11-14 February 2008, in Barcelona, Spain.

About Jagango
Jagango is a new cool mobile social networking platform for creating and sharing digital content such as photos, music and videos on mobile devices, by building free and easy-to-use mobile internet sites. To build your own mobile site, go to www.jagango.com.

About CellAdmin
CellAdmin is a market expert in the development and hosting of advanced Mobile Internet technologies and tool. It is focused in bringing the Mobile Internet to the masses, through the development of easy-to-use tools that enable both the most layman person and the more sophisticated programmer to develop, host and share a site that can be entered from any WAP equipped mobile phone. The company was established in 2005 by mobile Internet veterans. For more information about CellAdmin please visit the company website at www.celladmin.com

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How to Build a Web Design Business

Tuesday, January 8th, 2008

By Peggie Brown

With all of the free HTML editors available, building a Web site is a snap. For those less savvy (and with a bit of money) there’s Website in a Box, Website Wizard and Mr. Site Takeaway. Just think, with a little money and time, you too can build Web sites for profit. Are you ready to start a small business? No!

Publishing a couple Web pages can be accomplished by just about anyone, but to build a self-sustaining business one needs the right tools, planning, experience and training. Businesses paying $500 for a Web site quickly discover that their site rarely provides repeat business or referrals - the life blood of any business.

In this series of articles you’ll learn about the must have tools and skills to build a Web design business. This week our focus is on tools.

The Importance of Planning

Not every Web design firm chooses the same target market. Your target market depends on your skills, experience and the number of people in your organization. Many designers dream of targeting large businesses with big budgets, but before you jump, ask yourself the following: Do you have the ability to support this type of client? Can your cash flow sustain large projects that might only provide progress payments every three or four months? Do you have the expertise to comb through a large RFP (Request for Proposal), find cost effective solutions that meet all the requirements and implement what the client requires? Can you afford to spend hours preparing proposals which may never turn into actual paying projects? If not, choose the target market that fits your abilities, finances and needs. Look for a niche, but most of all look at what potential customers want.

Professional Tools for a Professional Job

Web design isn’t a business to start on a shoestring. Like any other business you need the right tools. The “right” tools depend upon the way you work, your skill level, your budget and your familiarity with professional authoring and imaging programs. You might need to try various pieces of software before you decide what’s right for you.

Web Authoring Tools

In a later article we’ll discuss why HTML knowledge is necessary. Every Web designer needs to be able to create a simple Web page by hand coding in HTML. Some designers feel comfortable using a simple text editor such as Microsoft’s Notepad. There are many open source versions of this type of simple text editor, such as Notepad ++. We prefer WYSIWYG Web authoring software that provides both a design and code view. WYSIWYG editors can speed up the design process, but the ability to view the code and make changes there is critical. The Web design area at about About.com has a questionnaire which will help you narrow down the choices for your operating system and needs. Some of the most used Web authoring software for professionals include Adobe’s Dreamweaver and Microsoft’s Expression Web.

Graphics

We start this section with a note about the importance of respecting copyright laws. It’s surprising how many people don’t understand that images and graphics can be (and usually are) copyrighted, thereby requiring a royalty payment for use. Copying graphics and images (off the Web) to incorporate into a design without permission of the owner can land you in some serious trouble. It’s important to find a source of royalty free (or rights-protected) images that you can afford to use. A few options are: Jupiter Images, iStockPhoto, Royalty Free Photos, Photos.com

[Ed. Note: WebReference featured a series on Stock Photography for Web Developers, which covered, among other things, copyright law. If you have any doubts about how an image can be used, read the fine print.]

Graphic Design Tools

Once you have a good source of royalty free images, you need graphics editing software for resizing, manipulating and editing images. Like Web authoring software, graphic design programs come in a variety of flavors and depend on your skill level and working methods. Probably the most well known image manipulation program is the most expensive and complex to learn - Adobe’s Photoshop. The down side is that Photoshop can be a overkill for the usual Web designer since it excels in print applications as well as Web graphic design. Adobe now offers Fireworks, a much simpler program to learn. Fireworks usually meets all the needs of a Web designer. GIMP is the new open source graphics design program for such tasks as photo retouching, image composition and image authoring. It works on many operating systems, in many languages.

Business Savvy

The Small Business Administration reveals that approximately 50% of all small businesses fail within the first five years. Poor planning leads the reasons for failure, but the top 10 reasons for business failure lead back to the owners lack of business savvy. Many would-be entrepreneurs simple fail to realize that running a successful business is a skill, takes a certain type of personality and requires long hours and commitment. A business owner not only needs capital and a desired product or service, but the ability to sell that product or service while interacting with vendors, customers, accountants, lawyers and bankers. Decision making while dealing with deadlines and stress is another critical skill for running any business.

If you aren’t a self-starter with foresight about the needs potential customers, the economy, its effects on your products and service and can’t organize and compartmentalize, business ownership isn’t for you. That doesn’t mean you can’t be a Web designer, it simply means that the business related tasks are best left to others while you concentrate on your Web design skills.

Contracts

To make sure you collect on the fees you charge for your work, you need a standard contract for use with every project. A written agreement documents what the parties agreed to and can save a lot of headaches when it’s time for payment. Without a contract you’re dealing with memory which can be highly variable depending on which party is doing the remembering.

Contracts demonstrate professionalism, document for the client the work you promise to do, what you will charge, dictate when payments are due, spell out who owns what, and provide methods to increase the overall scope of the project (usually with written change orders).

Legal and Accounting Advice

Before starting any business, the owner needs to know the type of business entity that best suits their business and personal needs. A business attorney will help you sort out the tax benefits and pitfalls of various types of business entities and will help you select what fits your specific requirements. Starting a business without forming a legal business entity might cost you your business and your personal assets as well. A business attorney can also tell you what requirements must be met in order to form and keep your business in good standing. Skipping this step is foolhardy and could be very expensive in the end.

Unless you’re both an accountant and tax expert, you also need an accountant. Your accountant makes sure that the requirements for your business entity are met and both income and expenses are correctly recorded and reported. A good accountant advises you when periodic tax payments must be made, how to offer benefits, what items maybe expensed or depreciated and if your business inventory or equipment is taxable.

In our next article we discuss critical skills and education for the Web designer.

About the Author

Peggie Brown is an owner and the president of Brown Holdings LLC. She runs a Web design and development business under KatsueyDesignWorks (http://www.katsueydesignworks.com/), in business since 1997. As a financial manager for 15 years and a paralegal for 10 years, Peggie incorporates her business and legal knowledge into her Web site design and development business along with writing content, tutorials and software instructions through ContentXperts.

This article originally appeared on WebReference.com

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Virtualization: Creating a new software development infrastructure

Tuesday, January 8th, 2008

Michel Genard
Software development is a fascinating industry that has changed over the years as developers have continually adopted newer programming languages, from Fortran to Pascal to C++ and beyond. But although developers readily look to software itself to drive innovation, few have considered their development infrastructure a possible vehicle for change. With the advent of virtualization in the development process, that’s about to change.

When the first embedded devices appeared, software as we know it today simply did not exist; all functionality was built into hardware. With the introduction of the microprocessor, software content emerged but still comprised only a small part of the overall system. Over the past twenty years, the embedded industry has witnessed a complete shift as software has exploded in size and complexity. Today, software is the primary driver of increased functionality and innovation in embedded systems.

Although hardware design has enjoyed significant investments in tools and process development, software development processes have remained essentially static since the 1980s. The hardware industry is aided by well-defined standards and processes, but software development methods have not kept pace, leaving programmers to approach software development entirely ad hoc.

The consequences of this lack of an underlying software development infrastructure are all too familiar: cost overruns, missed schedules and poor-quality software. The current approach to software development sees two-thirds of projects late to market, one third over budget, and nearly half of embedded designs canceled. Even the allocation of additional resources to a job or the rescoping of a product’s features doesn’t keep software developers from consistently hitting walls.

Why does this staggering disconnect exist in the world of embedded programs? Why is software development stagnant even as designs grow more and more complex? This is an issue neither of people nor of components. Rather, it is caused by the absence of a strategic development infrastructure thoughtfully designed to aid software development.

An embedded device today is typically built from the ground up, starting in hardware and ending in software. The process is very sequential, beginning with hardware designed around certain expectations regarding memory, MIPS, interface, connectivity, and so on. Multiple components are pulled together to build up a hardware system, and it is on top of this that software is developed. This hardware-centric, bottom-up approach involves multiple steps and introduces multiple dependencies, and only after the system integration phase, when the software is actually running on the platform, can the system be understood from a performance point of view. (Contrast this with an SOA approach, which maps out necessary services before designing an infrastructure to support them.)

The chief weakness of a bottom-up development approach is that it treats software as an afterthought in the design process, even though an increasing amount of system functionality depends on software, not hardware. Integration occurs very late in the game, making it difficult to discover (much less fix) bugs introduced by the hardware, design or architecture. In many cases, developers are forced to rethink their designs to the detraction of both schedules and budgets.

As software complexity reaches new heights and solid programs prove the biggest hurdle to shipping, the inefficiency and impracticality of the hardware-centric approach is becoming increasingly evident. How can developers strategically rethink their development approach so that they are no longer at the mercy of hardware? How can software development at the system level begin earlier in the design process? This is where virtualization comes in.

Precursors of virtualization
Virtualization has been used in the development of embedded devices for several years both as a replacement for actual hardware and as a designing and debugging platform for complex systems. In the hardware design industry, simulation has been employed at both the socket and PCB level. Whether designing processors, PCBs or SOCs, hardware developers can use simulation tools from the likes of Mentor, Cadence and Synposys to model and predict the behavior of their systems without having to wait for the development of the actual physical systems.

Outside of the world of embedded devices, we’ve seen a number of industries successfully employ virtualization after hitting walls when using traditional approaches. Over the past two years, server virtualization has made great inroads by improving data center efficiency and lowering overall ownership costs. Virtualization has solved such persistent challenges as server proliferation, CPU underutilization and application isolation.

Simulation has also been employed by a number of industries, such as aerospace and defense, in their own software development. Often, these industries require such complex designs that waiting a year or more for hardware isn’t feasible. Simulations have been developed internally as point solutions, design complexity essentially mandating that these companies invest resources in internally developing virtualized software development solutions.

The embedded software development industry is now at a point where neither traditional, hardware-centric development approaches nor internal, one-off virtualized software development solutions can deliver the time-to-market, cost-saving and quality-assurance benefits that are a must in such a competitive market. The role of software content in embedded devices shows no signs of diminishing, and the proliferation of multicore devices adds an unprecedented complexity into the mix both in hardware and software. The inevitable move toward multicore designs has only highlighted the need for software development solutions that can harness the performance potential of multicore devices.

The current state of embedded software development has made it necessary for companies to strategically revisit and rethink their processes not only at the component level but at the process design level. We can learn from what the hardware industry, among others, did with simulation, but we need to take virtualization even a step further, implementing it across our own industry as a foundational, underlying infrastructure.

Virtualized software development (VSD) is a product-development strategy that frees software development from its dependence on the physical hardware on which applications will be deployed. Instead, VSD enables software developers to develop directly on the desktop, producing a true codevelopment strategy in which hardware and software development begin simultaneously. Software/hardware integration becomes a front-end priority, and not a back-end rush job

Virtualized software development lets developers create high-performance, functionally accurate models of hardware that enables them to begin debugging, testing and optimizing systems much earlier in the development process. Virtualization can be used in varying degrees of detail, from processors to boards to devices, at such a level of accuracy that binary code can run unchanged and unaccompanied by any divergence in behavior.

High-performance virtual platforms deliver degrees of control impossible when testing on physical hardware. Determinism, the inherent nature of software to always execute the same way when the same conditions apply, becomes a reality in virtual testing. As processor and hardware designs increase in complexity, determinism means nothing more than that changes in operation are caused not by traceable flaws in software but by arbitrary, often untraceable changes in hardware that create events known as “Heisenbugs,” states dependent on subtle timing interactions sometimes impossible to replicate even when the entire system is repeatedly rerun. The simulation infrastructure underlying a virtualization platform allows developers to single-step or stop systems to examine their internal states. Developers can reproduce an error repeatedly even when simulating multiple processor cores and multiple processes on each core, making multiprocessor debugging as easy as debugging a single program on a single processor.

VSD also sidesteps codeís inherent limitations, delivering a TiVo-like functionality by executing code in reverse when needed, without any code instrumentation or additional hardware. Virtualization lets developers wait for an error and then “rewind” the code’s execution to search for the culprit behind it. Rewinding code execution requires both the capacity to checkpoint an entire system inexpensively and the ability to simulate at very high speeds. Stepping back an instruction is actually accomplished by reverting to a checkpoint and stepping forward to a point one instruction prior to the point of rewinding, a process that appears almost instantaneous to users if the simulation speed is high enough. This reversible debugging environment works with multiprocessors and multicore processors, allowing developers to track down bugs such as race conditions, divide by zero errors, lock conflicts, deadlock and priority starvation, all of which will crop up even more often in multicore architectures.

The creation of virtual models also allows for rampant standardization by identifying a meaningful platform that both software and hardware teams can use, enhance and share. VSD can access an unlimited number of virtual targets, and the virtual platform (being a software representation of hardware) can be e-mailed around the world in seconds. Because the data produced by virtual models is not physically restricted, companies can share their VSD IP with partners and customers easily and effectively.

VSD was recently illustrated in the introduction of a similar platform, Google Android, although in the context of an SDK. Nevertheless, the concept is the same and consists of a simulated virtual platform enabling a top-down approach that makes hardware essentially irrelevant at the application level. The virtual platform provides all services necessary for design, allowing hardware to be thought of as a front-end, not a back-end, concern. Once software is developed, hardware is optimized for the software, not vice versa.

VSD in practice
Virtualized software development is spreading its benefits on a mainstream, commercial scale. A number of companies have already implemented this approach in their design processes, creating new and innovative infrastructures based on VSD.

IBM employed VSD in the development and testing of the complex software found in its powerful POWER6 platform. By using VSD, IBM’s development teams were able to rise to the challenge of developing complex firmware and hypervisors to boot and run multiple OSes on a virtual system model without the need for physical hardware. This, in turn, helped reduce the overall hardware expense. IBM quickly realized that it could use virtualized software development to optimize its entire product development life cycle as well as minimizing barriers between hardware and software design teams.

GE Aviation Systems (formerly Smiths Aerospace) employed virtualization to develop simulated models for its processing modules. GE modeled the final target system to provide significant benefits, when compared with a traditional development environment, that included reduced development and test costs, integration costs, acquisition and maintenance costs and cost of change. The deterministic capability of VSD also allowed GE’s developers to recreate performance issues at their leisure for in-depth inspection and diagnosis.

Wind River, the leader in DSO, has used VSD for some time to improve their OS development process (as in VxWorks SMP), consistently and publicly identifying VSD as a primary element in their development strategy.

Recently, Monta Vista Software, a provider of Linux for intelligent devices, took VSD a step further and made virtualization a key part of its software sales and evaluation process. Monta Vista allows its potential customers to evaluate Linux product offerings over the Web by using an evaluation service called TestDrive to connect users to a virtual board farm built and run on a virtualized software development platform. This is an excellent example of the way that VSD encourages new ways of thinking and doing business.

By: Michel Genard (mgenard@virtutech.com) is vice president of marketing at Virtutech Inc. (San Jose, Calif.). He is an industry veteran with more than 20 years of experience in the software and hardware embedded market.

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Offshore IT outsourcing helps economy

Wednesday, December 12th, 2007

Sources: CNET News.com, 3/30/2004  Offshore outsourcing of software and information technology services tasks not only is boosting the U.S. gross domestic product but also helping to generate U.S. jobs, including positions in the IT sector, according to the report. Released Tuesday, it was prepared by research firm Global Insight and sponsored by the Information Technology Association of America trade group.  ITAA’s members include tech giants IBM, Electronic Data Systems and Accenture.

These companies are among those that are locating operations in lower-wage countries such as India.  “While offshore IT software and services outsourcing has displaced and will continue to displace workers in IT software and services occupations, increased economic activity creates a wide range of new jobs–both IT and non-IT,” the report states. “As the benefits compound over time, the U.S. economy operates more efficiently, achieves a higher level of output, creates more than twice the number of jobs than are displaced, and increases the average real wage.” 

 The study comes as the practice of farming out high-skilled work to low-wage countries has become a hot-button issue and part of the U.S. presidential campaign. So-called offshoring also is pitting companies against workers. Technology professionals group IEEE-USA recently published a position paper with a dramatically different conclusion from that of the ITAA study. IEEE-USA said the outsourcing of high-wage jobs to low-wage countries poses a serious, long-term challenge to the United States’ technological leadership, economic vitality and military security. 

 According to the new ITAA-sponsored report, 2.3 percent of total IT software and services spending by U.S. corporations in 2003 was devoted to offshore outsourcing activities. That figure will rise to 6.2 percent in 2008, the study says. During that same time period, total savings from offshoring are expected to climb from .7 billion to .9 billion.  The cost savings and use of offshore resources “lower inflation, increase productivity, and lower interest rates. This boosts business and consumer spending and increases economic activity,” the report states. The study says the benefits of offshore IT outsourcing added .6 billion to real gross domestic product in the United States last year.

By 2008, real GDP is expected to be 4.2 billion higher than it would be in an environment in which offshore IT software and services outsourcing does not happen, according to the report. The “incremental economic activity” from offshore IT outsourcing created more than 90,000 net new jobs in 2003, and is expected to create 317,000 net new jobs in 2008, according to the report.  Shipping software and IT services work abroad leads to higher real wages for U.S. workers through lower inflation and higher productivity, according to the study. Real wages were 0.13 percent higher in 2003 and are expected to be 0.44 percent higher in 2008, the study states   

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