Software failure statistics are abundant and serve as clear evidence that we must reform software development. While industry claims an IT labor shortage is the motivating force behind outsourcing, the greatest factor is directly related to our inability to deliver value-add software. As organizations continue to lose faith in IT as a trusted partner, the services we offer are little more than an ample commodity, and the search for cheaper labor will persist. But, there is no IT labor shortage.

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Some of you may have seen this video explaining the placement of phony job ads that are subsequently used to prove to the Department of Labor that there is an IT labor shortage. Lou Dobbs also got in on the mix as shown in this YouTube video, or take a look at the transcript. This ammunition is used to secure green cards for H-1B Visa workers. It’s repulsive. Bottom line - there is no IT labor shortage.

Here are some more numbers from the Dobbs video. Universities are pumping out over 300,000 bachelors, masters, or PhD degrees annually in computer or information science, math, and engineering. The Department of Labor predicts the average yearly job creation in those fields to be 120,000 jobs.

I’m a believer in competition, but it must be fair. Data suggests that on average, H-1B Visa Holders are paid between $12,500 and $20,000 less than their American counterparts. I’m not anti-H-1B. I’ve worked with a large share of very good developers who were H-1B visa holders. Unfortunately, the H-1B visa program is being used to replace the jobs of U.S. IT professionals with cheaper labor.

A two pronged approach is required to fix the problem and requires a professional code of conduct between employees and employers. The result is a win-win-win situation for all involved. First, we need not eliminate or minimize the H-1B visa program, but instead must bring the salaries of visa holders up to levels equal to that of their American peers. Second, we must reform IT through incremental delivery of quality software. Until these happen, U.S. citizens will continue to suffer job loss due to anti-competitive and fraudulent practices.

There is no IT labor shortage in the U.S. There is no dearth of software developers. Instead, this shortage is reinforced through repetitious pronouncements by industry of the impending labor crisis, and is used as outsourcing ammunition. In reality, organizations outsource because of two simple and related factors:

• Business believes IT costs are too high and by outsourcing IT labor, cost is reduced.
• IT doesn’t deliver value-add business software.

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