|
Globalization and Offshoring of Software [home]
A Report of the ACM Job Migration Task Force
William Aspray, Frank Mayadas, Moshe Y. Vardi, EditorsIntroduction
 pdf (16 KB)In the spring of 2004 we were asked by the Association of Computing Machinery (ACM) to chair a task force to study the phenomenon of information-technology offshoring. Offshoring was a hot topic in early 2004. Since the dot-com and telecommunication crashes of the early 2000s, offshoring appears to be the proverbial "third shoe" to hit the IT sector in the United States. While articles on offshoring and outsourcing appeared in the media weekly, sorting out facts from fiction was exceedingly difficult. While it was clear that offshoring was a boon to providers in developing countries, debates raged on its impact on developed countries. Getting a clear, factual picture of IT offshoring was undeniably important and timely. ACM offered us a free reign in conducting this study, subject to two constraints. First, the study had to look at offshoring from a global perspective, reflecting ACM's position as an international organization. Previous studies of offshoring have typically taken a national, usually American, perspective. Second, the study had to be completed roughly within one year, which implied that it had to be a secondary study, based on published material, rather than a primary study, doing its own collection of data. Early on we decided to focus on the software side of IT. Offshoring of IT manufacturing has been going on for a number of years; the phenomenon that took off during the early 2000s was the offshoring of software. Our hope is this report sheds much-needed light on software offshoring. It points out that offshoring is a symptom of globalization, which has been an inexorable economic force since 1990, while examining the specific forces that drive software offshoring, both at the country level and at the firm level. It surveys the debate on the economic impact of offshoring, and examines the available data, pointing out the paucity of reliable relevant data. The report also shows how IT research has been leading the offshoring trend. It highlights risks and exposures to individuals, corporations, and countries created or magnified by offshoring. Finally, it portrays the opportunities and challenges that offshoring poses to IT education in both developing and developed countries. The Task Force was assembled during the second half of 2004. Bill Aspray, who has experience with work force studies, agreed to serve as executive consultant and primary editor for this study; indeed, it could not have been carried out without him. To ensure a broad perspective, we recruited around 30 Task-Force members, computer scientists, economists and sociologists from the US, Europe, Israel, India and Japan (see listing below and biographies). We are grateful to all of them for volunteering their time and efforts. The Task Force held four meetings: in Chicago, IL, Oct. 8-9, 2004; Washington, DC, Dec. 3-4, 2004; Palo Alto, CA, March 4-5, 2005; and New York, NY, May 13, 2005. During it first meeting, the Task Force scoped the study, decided what the main topics should be, and divided into several committees, with some members serving on more than one. Roughly, each committee was focused on one topic, which is covered by one chapter in the final report. The next two meetings were dedicated to hearing perspectives by many experts and scholars (listed below), while committees continued their work during and between the meetings. At the final meeting, the committees presented drafts of their reports and received feedback from the rest of the Task Force. The committees prepared the final drafts of their reports during the summer of 2005. These drafts went then to Aspray for editing. The edited versions were then sent to reviewers; each chapter was vetted by several reviewers. The process of review and revision continued through the fall of 2005. During its work, the Task Force has reviewed hundreds of articles on the subject of offshoring, and IT offshoring in particular. To aid the Task Force in its work, Aspray prepared an extensive annotated bibliography. While this bibliography is too extensive to be included in the printed report, ACM is making it available online (http://www.acm.org/globalizationreport) as a service to its members. We appreciate the efforts of the many individuals who helped the Task Force carry out its work.
Frank Mayadas and Moshe Y. Vardi |
|
|
|