China-based IT service giant Pactera will establish their first Australian development centre at the University of Wollongong’s Innovation Campus.
Michael McCann, Director of Pactera’s Wollongong Nearshore Development Centre, expects that the centre will create 35 new jobs locally by 2014, drawing primarily from UOW graduates.
Pactera operate under a business model known as ‘right-shoring’, which involves balancing a combination of local talent and outsourcing.
With almost 1 000 ICT graduates each year from the University of Wollongong alone, the practice of outsourcing engineering and coding could harm local job prospects.
Shane Patrick, industry analyst and developer with Sydney IT company Blue Monkey, believes though that there will always be opportunities for high-end local talent.
“Outsourcing lets companies reduce costs, but it has several drawbacks,” says Mr Patrick.
“Reduced speed and maintainability mean that higher companies will always have a need for local solutions”.