Globalization Report Addendum

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Addendum 1 to the ACM Report on

Globalization and Offshoring of Software

March 27, 2006

An error was inadvertently made in a calculation on Table 1-8 entitled IT Employment in the

United States (US Bureau of Labor Statistics). In the May 2004 column, the cell representing

“Computer Specialists, All Others” was accidentally added into the cell for the row labeled TOTAL

as well as the cell for the row labeled TOTAL, including Computer Hardware. When corrected,

the TOTAL cell for May 2004 is 2,951,260 (rather than 3,081,680) and the TOTAL, including

Computer Hardware is 3,026,020 (rather than 3,156,440). Here is the corrected version of Table

1-8:

Table 1-8: (Corrected) Professional IT Employment in the United States (US

Bureau of Labor Statistics — Occupational Employment Statistics)

Employment

May Nov. May Change, May 2003

to May 2004

Occupations 1999 2000 2001 2002 2003 2003 2004 # %

Computer and Information

Scientists, Research

26,280 25,800 25,620 24,410 23210 23,770 24,720 1,510 6.50%

Computer Programmers 528,600 530,730 501,550 457,320 431640 403,220 412,090 -19,550 -4.50%

Computer Software Engineers,

Applications

287,600 374,640 361,690 356,760 392140 410,580 425,890 33,750 8.60%

Computer Software Engineers,

Systems Software

209,030 264,610 261,520 255,040 285760 292,520 318,020 32,260 11.30%

Computer Support Specialists 462,840 522,570 493,240 478,560 482990 480,520 488,540 5,550 1.10%

Computer Systems Analysts 428,210 463,300 448,270 467,750 474780 485,720 489,130 14,350 3.00%

Database Administrators 101,460 108,000 104,250 102,090 100890 97,540 96,960 -3,930 -3.90%

Network and Computer Systems

Administrators

204,680 234,040 227,840 232,560 237980 244,610 259,320 21,340 9.00%

Network Systems and Data

Communications Analysts

98,330 119,220 126,060 133,460 148030 156,270 169,200 21,170 14.30%

Computer and Information

Systems Managers

280,820 283,480 267,310 264,790 266020 257,860 267,390 1,370 0.50%

Computer Specialists, All Other 130,420 130,420

TOTAL (Excluding "Computer

Specialists, All Other")

2,627,850 2,926,390 2,817,350 2,772,740 2,843,440 2,852,610 2,951,260 107,820 3.79%

Computer Hardware Engineers 60,420 63,680 67,590 67,180 72,550 70,110 74,760 2,210 3.00%

TOTAL, including Computer

Hardware Engineers

(Excluding "Computer

Specialists, All Other")

2,688,270 2,990,070 2,884,940 2,839,920 2,915,990 2,922,720 3,026,020 110,030 3.77%

One of the main points made in Chapter 1 of the report is based upon the data in Table 1-8—

that is, the number of IT jobs in the United States has increased since 1999, a period in which

there was a high demand for IT workers due to the dot -com boom, even in the face of

increasing offshoring of IT work from the US to other countries. With the corrected statistics in

Table 1-8 the point still remains true. In 1999, the Total of IT workers was 2,627,850 and the

Total, including Computer Hardware, was 2,688,270. Compare these with the 2004 numbers:

2,951,260 Total and 3,026,020 Total, including Computer Hardware. The 2004 numbers are

also slightly higher than the numbers for the year 2000, which might represent the height of

the dot-com boom.

The US Bureau of Labor Statistics (BLS) has two sources of occupational employment data that

can be used to estimate the number of IT workers in the United States. There is the

Occupational Employment Statistics (OES), based on semi-annual surveys of 1.2 million

employers. The OES data were used in preparing Table 1-8. The other source of BLS

occupational data is the Current Population Survey (CPS), based on surveys of around 50,000

households per month. The two surveys are complementary; each has its strengths and

weaknesses. During the period of interest—1999 through 2005—the two programs were in the

process of changing their occupational classification systems. The changes made were more

likely to shift workers among occupations within the IT sector rather than to move workers in or

out of IT occupations; thus the aggregate data are less likely to be affected by the changes in

occupational classification schemes than the figures for individual occupations. As an alternative

to the OES data, some BLS staff suggested we use also the CPS data beginning in 2000 because

the occupational classification data are reasonably consistent over this period. If one uses the

CPS data for aggregate time -series analysis of the years 2000 to 2005, the comparative results

are the same: there are more IT workers in the US at the end of this period—a period of

increasing offshoring—than there was at the height of the dot-com boom in the year 2000.

(Here also time-series analysis should not be used for individual job categories.) For more

details about the OES and CPS data, see http://www.bls.gov/oes/home.htm and

http://www.bls.gov/cps/home.htm. The two data sets support the point made in Chapter 1,

which is that IT employment in the US has recovered by 2005 from the decline of the early

2000s in spite of increasing offshoring.

Professional IT Employment in the United States (US Bureau of Labor Statistics—

Current Population Survey)

Employment

(Numbers in thousands)

Percentage Chage

Occupations 2000 2001 2002 2003 2004 2005 2000-2005 2000-2004

Computer and Information Systems Managers 228 316 323 347 337 351 53.59% 47.81%

Computer Scientists and Systems Analysts 835 734 682 722 700 745 -10.78% -16.17%

Computer Programmers 745 689 630 563 564 581 -22.01% -24.30%

Computer Software Engineers 739 745 715 758 813 832 12.58% 10.01%

Computer Support Specialists 350 355 353 330 325 334 -4.57% -7.14%

Database Administrators 54 66 84 72 94 89 64.81% 74.07%

Network and Computer Systems Administrators 154 185 179 176 190 200 29.87% 23.38%

Network Systems and Data Communications Analysts 305 353 328 359 312 322 5.57% 2.30%

TOTAL 3,410 3,443 3,294 3,327 3,335 3,454 1.29% -2.20%

Computer Hardware Engineers 83 100 76 99 96 81 -2.41% 15.66%

TOTAL (Including Computer Hardware Engineers) 3,493 3,543 3,370 3,426 3,431 3,535 1.20% -1.77%

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