Technology Jobs booming in Asian Countries
Due to economic slow down and real estate pricing collapse in the recent years in United States, the unemployment rate is currently at 9.5% as of June 2010. Most companies in US are planning for different cost cutting process. One of its key thing to reduce the number of employees in USA and hire more number of workers in Asian Countries such as India, Philippines, Indonesia, Thailand, etc. India is one of the countries where most technology jobs were outsourced. However the key managers and base is still based in USA.
Refer to following charts from http://www.bls.gov/news.release/pdf/empsit.pdf
Even the Unemployment rate for the country is at 9.50%, there are some states with higher percentage of unemployment rate that is more than 10% in California, Michigan, Nevada, Illinois, etc.
Outsourcing to Asian Countries
The technologies jobs were outsourced mostly to Asian countries due to cost cuttings. As you may know many companies have started their own corporation in Asian Countries rather than depending on major Indian consulting companies. Even then there are lot of jobs outsourced Indian IT companies. For a technology job, if companies in united states have to pay around $45.00 - $60.00 per hour in USA, they can get the same job done in India at the rate of $15.00 - $20.00 per hour in India. That would be good savings for the companies in USA.
Now a days employees in technology sector in India demand more salaries as outsourcing is done to India for about more than a decade, it has started widely spread to other countries such as Philippines, Thailand, Indonesia, etc. Manila and Bangkok are the key places where significant amount of technology outsourcing is done. This is because India is also slowly becoming is expensive to get the job done compared to other Asian countries, especially Philippines and Thailand. Philippines would be the next choice after India for many companies in United States. Nevertheless Thailand and Indonesia are also in the pipelines.
As still the US economy slows down, I expect the unemployment percentage in USA will go up and at the same time, there might be more technology jobs coming into Asian countries - Philippines, Thailand and Indonesia along with India.
Even there are many IT jobs present in Singapore, Malaysia and Japan, they are not too much dependent on US companies compared with India, Philippines, Thailand and Indonesia.
Down the Road
As more number of jobs getting outsourced to Asian Countries from USA, it leads to unhealthy situation in USA which is not good. It may backfire at some stage in the future especially
- when the US economy recovers significantly.
- More students are getting to IT in Asian Countries due to increased job opportunities, it provides a vacuum for other fields such as Agricultural, Mechanical and Civil department in those countries.
Due to the vacuum created in other fields, they will also catch up in the coming years. There is no surprise for me if there is a boom for Agriculture Jobs in India.
However the current situation is much favorable for the technology professionals in Asian countries.