Worker Shortage, Outsourcing, and Immigration as Features of Computer Technology Competition between the United States and India

In this study, we examine questions relating to the state of competition between the United States and India in the field of computer technology. We consider whether there is continual increase in the outsourcing by American firms of computer service work abroad, claims of computer worker shortage, and claims of the need for increased immigration of foreign computer workers to deal with a supposed deterioration in American technology. We conclude, first, that both U.S. and Indian computer service companies and their potential clients prefer close collaboration rather than “arms length” relationships. As a result, service companies in both nations have made large efforts to set up business in each other’s country. Second, we find that the actual level of effort to hire workers in computer technology does not correspond to the intensity of need claimed by computer industry leaders. Finally, we conclude that the United States occupies a position of vigorous leadership in science and technology, evidenced by the largest number of graduates in those fields of any country, a number enhanced by a strong inflow of highly qualified students from other countries seeking advanced training and future careers here