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Information Technology Outsourcing and the Brain Drain: A Preliminary Investigation

The Brain Drain has been the subject of research and discussions since the 1950s. Most of the earlier studies on the subject emphasized the negative effects of the brain drain on the developing countries which were losing their intellectuals, high-skilled and talented people to the developed countries, especially Western Europe and USA. However, recent studies have indicated that the brain drain can also have positive effects on the development of both developing and developed countries. Information technology outsourcing created a market for some developing countries where their high skilled and talented people work for outsourcing companies with better wages and benefits without leaving their home country. These facts lead to the question on the effect of information technology outsourcing on the brain drain phenomenon. This paper aims to investigate the existence of a relationship between information technology outsourcing and the brain drain, and if found study whether IT outsourcing lead to a reduction or an increase in the brain drain issue.