A research and consulting firm known as Forrester Research argues that jobs been lost in the IT sector in the United States due to software outsourcing are actually low paying IT jobs such as software programming or computer support specialists or computer operators. Higher paying jobs which include system analysts, network analysts and research analysts are still dominating the market. It is estimated that jobs in this sector are growing at a steady rate of 4 to 5% every year. These types of jobs require excellent domain knowledge and idea about the internal working of IT systems and business process. In software outsourcing these qualities are difficult to come by.

Jobs that don’t get affected by software outsourcing such as system analysis and application development are increasing at the rate of 6% per year. That’s because, their demand is growing continuously. Software outsourcing can be shifted to low-cost locations like India and china or other offshore software development countries, where buyers need in-house workforce to customize and upholder software. A large number of foreign companies are shipping jobs in Offshore Software Development, BPO and Call Centers to their Indian subsidiaries or to contractors in India or china with a mind set of cutting costs by the way of Offshore Outsourcing.

It is predicted that in the near future there might be a decline in software outsourcing. According to a research report, attraction of cost saving in software outsourcing is still very high and because of that, increase in jobs like software programmer will be very less. That further results into very low increase in software programming jobs, salary rise will also hardly 1% in next few years. In fact, salary of computer operators and database administrators will also grow at the minimal rate of 1%. However, salaries of computer research scientists and information system managers will have highest growth at around 3.5% every year whereas salaries of analysts and system administrators will grow at the rate of 2 to 3% every year.

It is also predicted that the market of software outsourcing which has major costs saving today will decrease by 2008. The main reason behind this will be the decreasing gap between the US salary and the outsourcing countries such as India. As, it will lower the salary in US, while in India and other offshore software development countries, because of lack of availability of resources, salary rise will be very high and this will also decrease the costs saving. Finally, companies will prefer their in-house resources rather than offshore outsourcing.