IBM is planning to move roughly 4,730 programmers to India, China and other offshore locations. The company has notified its managers of the plan, which mainly will affect workers in Connecticut, New York, North Carolina and Colorado, according to The Wall Street Journal. Another 3,700 jobs have been identified by IBM as "potential to move offshore."
In addition, computer services firm Accenture reportedly plans to double its current workforce in India. The company will add 4,700 jobs to its India-based staff of 4,300 over the next 12 months.
Real estate economists are becoming increasingly concerned about firms such as IBM sending thousands of jobs offshore. In fact, International Data Corporation recently estimated that within four years, 23% of all information technology jobs will be offshore. Only 5% of those jobs are offshore today, so the projected annual increase of more than 4% through 2007 is staggering.
Gains or declines in job growth are leading indicators for the office and multifamily sectors. As landlords of both property types gear up for a recovery, job losses to foreign markets only stand to delay sector recoveries.