
The University of New Mexico
NEWS RELEASE
Contact: Steve Carr, (505) 277-1821, scarr@unm.edu
February 28, 2006
ACM Study Cites Education and Research & Development Investment to Assure Global Competitiveness; UNM professor part of the ACM Taskforce
(Detailed Offshoring Study Assesses Rapid Changes Driven by Information Technology)
In a study released by ACM recently, the Association for Computing Machinery, a team of internationally recognized computer scientists, industry leaders, labor economists and social scientists cited educational policy and investment in research and development as critical elements for countries to stay competitive in today's global environment for Information Technology (IT).
The study acknowledged that global competition in higher-end technology-based skills, such as research, is increasing. It concluded that policies designed to improve a country's ability to attract, educate and retain the best IT talent are necessary to foster innovation and remain competitive in the global environment.
The University of New Mexico School of Public Administration Professor and Regents' Lecturer Roli Varma was a member of the ACM taskforce.
“It was an honor to participate in such a high-level taskforce,” said Varma. “ACM was interested in having diverse views on the subject. I brought an international angle as well as expertise as a social scientist who has studied new immigrants in the U.S. workforce, women and minorities in information technology education, and management of industrial research and development.”
Varma attended and participated in the working meetings, which were held in Chicago , Washington D.C. , San Francisco , and New York between 2004 and 2005. She also served on a subcommittee on research with Juris Hartmanis, a member of the National Academy of Sciences, and Richard C. Walters, the president of the U.S. operations for a Mitsubishi Electric Research Laboratories.
“The sub-committee on research analyzed globalization of information technology research and produced a chapter on it,” said Varma. “I also used resources and contacts in the U.S. and in India to help the project succeed.
“Since its release on Friday, the study has drawn extensive media coverage including in the New York Times, Newsweek and CNN,” said Varma.
Titled "Globalization and Offshoring of Software," the study noted that rapid advances in information technology itself have fueled globalization trends in the software industry as well as government action and economic factors.
"We changed the world," said Moshe Y. Vardi, co-chair of the study group and director of the Computer and Information Technology Institute at Rice University . “Now, it is changing us."
Vardi cited the wide availability of low-cost, high-bandwidth telecommunications and standardized software platforms and applications as well as digitalization of work processes as driving factors.
"But we also have identified the keys to continued innovation and invention, which will sustain competitiveness in this global environment," he added. The complete Globalization and Offshoring of Software Report as well as the Executive Summary and Findings, Overview, Bibliography and Task Force Member list are available at: http://www.acm.org/globalizationreport.
With a comprehensive approach, the study considered nearly a dozen case studies of diverse firms facing offshoring challenges. The study team members conducted an extensive review of available data and literature on offshoring and outsourcing, and heard in-person accounts from many international experts.
IT Jobs Outlook Brightens
The study found that, despite intensifying competition, offshoring between developed and developing countries can benefit both parties. The study cited data from the U.S. Bureau of Labor Statistics (BLS), which indicates that more IT jobs are available today in the U.S. than at the height of the dot.com boom. This trend is evident despite a significant increase in offshoring over the past five years. In fact, U.S. IT employment in 2004 was 17 percent higher than in 1999, and the BLS data reveals that IT jobs are predicted to be among the fastest-growing occupations over the next decade.
The report found that IT workers and students can improve their chances of long-term employment in IT occupations by acquiring a strong educational foundation, learning the technologies used in global software, and keeping skills up to date throughout their careers. Other steps the report deemed necessary for fostering the next generation of innovation include:
Sustaining or strengthening technical training and education systems
Sustaining or increasing investment in research and development
Establishing governmental policies that eliminate barriers to the free flow of talent
William A. Wulf, president of the National Academy of Engineering, noted the unique international perspective provided by the ACM report.
"It provides a deeper understanding of the trends and forces driving globalization and offshore outsourcing of software. It also offers significant value for those shaping the policies,
priorities, and investments of countries that intend to be part of the global software-systems-services industry," said Wulf, vice chair of the National Research Council, the principal operating arm of the National Academy of Sciences and Engineering.
The study also found that global competition in higher-end skills, such as research, is increasing. Many companies, the study reports, have established research centers in multiple countries, although most retain strong research operations in their home country. The report also pointed to an increase in total worldwide investment in research and wider distribution of research activities around the world.
The ACM study cited many reasons for locating certain operations in specific countries, from political to linguistic and cultural to economic. In some cases, the study notes, creating collaborations outside the U.S. is often facilitated by offshore operations, but offshoring does not always result in downsizing one part of a company and building another. Offshoring can result in growing business worldwide, working globally, and creating a climate of innovation that can produce a substantial number of new jobs, including many that are high on the value chain.
Daniel T. Ling, corporate vice president for Microsoft Research, cited the report's confirmation that the U.S. faces long-term challenges from falling interest and skills in math and science programs in its primary education system. "The perception that employment opportunities in software and related technologies are vanishing has led to a significant drop in enrollment in IT educational programs, which will in turn lead to shortages in highly trained and qualified professionals in the future. This report helps to raise awareness of the realities that face industry, students, educators and policy makers, and is important reading to advance the discussion of these issues."
The ACM report concluded that the future depends on the nation's commitment to acknowledging the challenges of the global environment. The brightness of the future for individuals, companies, or countries rests on their ability to invest in building the foundations that foster innovation and invention, the report said.
The University of New Mexico is the state's largest university, serving more than 32,000 students. UNM is home to the state's only schools of law, medicine, pharmacy and architecture and operates New Mexico's only academic health center. UNM is noted for comprehensive undergraduate programs and research that benefits the state and the nation.
www.unm.edu