Another sign that the US technology job boom is a thing of the past, major technology companies are increasingly moving jobs offshore. Attracted to a highly-skilled, low-cost workforce in Asia, companies like Dell, HP, IBM, and Motorola are shifting operations overseas. According to Forrester, a total of 3.3 million U.S. jobs and $136 billion in wages will be transferred abroad by 2015. In this article, Part I of a two-part series on the Asian IT migration, we address factors prompting the shift. In Part II we'll look at what US recruiters can do to stay ahead of the Asian IT curve.

Under pressure to deliver better services at a lower cost, US tech companies are moving R&D, manufacturing, as well as back-end operations (call center, data entry, accounting) to countries like China, India, Taiwan, and Malaysia. According to Gartner, more than 300 Fortune 500 firms currently do business with Indian IT services companies. By 2004, more than 80% of US companies will have explored moving their IT operations offshore. By shifting jobs to Asia, companies can expect total cost reductions of 30% to 40% a year -- mostly in salary savings. The annual salary for a talented programmer in India is approximately $20,000 a year. Call-center workers in India might earn $4,000 to $7,000 while their US counterparts can earn in the high $30,000's.

What's more, the quality of work in Asian countries often matches, if not surpasses, quality of work in the US. Workers in Taiwan, China, and India are highly educated and possess strong English skills. As a result, Asian workers can not only drive results, but also adapt to the culture of American companies. Worker motivation is also often higher. While clerical and call center jobs in the US are often considered mediocre-paying, dead-end jobs, the same positions are considered relatively prestigious and high-paying in Asia. For US technology companies, this difference can translate into more-motivated, more-productive employees.

Advances in telecom and Internet services are also enabling offshore transitions by facilitating real-time collaboration. The emergence of low-cost, high-bandwidth telecom solutions, standardized business applications, and Internet-based collaborative tools are helping companies sync global operations. Moreover, able to communicate instantaneously, at a low cost, companies can offer their customers greater service flexibility. With operations in both the United States and Asia, companies can now offer clients around-the-clock support, or what many call "follow the sun" capabilities.

Although the shift to Asia points to major job losses for the US, experts do not see the US IT market depleting. As long as American companies lead in technology, significant IT opportunities will exist in the US. Rather, growth will slow as US job creation matches job transitions abroad. The truly lucrative opportunities exist for recruiters who can help American companies execute their offshore strategies. In Part II of this series, to be published next month, we'll explore ways US recruiters can support US companies as they shift operation overseas.

Recruiters World Special Reports is a timely, in-depth news series that explores vital issues and trends affecting the human-capital industry. Published monthly, Recruiters World Special Reports is presented and distributed exclusively through Recruiters World in Review. Also watch for new articles as they appear on the Recruiters World home page.