Offshoring Stands Out in Services Spending

Ann All

Last November I wondered whether economic troubles in the United States would hurt or help the business of offshore services providers. If all spending dropped, such companies would suffer. But they could benefit if companies saw them as a way to maintain their service levels at a lower cost. Six months later, it looked as if the latter scenario was winning out, with outsourcing faring pretty well in relation to other areas of IT spending.


That's still true, according to Forrester Research's report "The State of Enterprise IT Services: 2009." While 41 percent of respondents in North America and Western Europe said they plan to reduce spend on IT contractors, few of them expect to cut offshore spending. In fact, it looks as if offshore spending will grow.


Fifty-five percent said they would maintain current spending levels, while just 12 percent planned to cut offshore funding. Only 6 percent of respondents said they had no plans to begin an offshoring project in the next 12 months, down from 37 percent in 2008. Twenty percent have committed to working with offshore providers, up from 14 percent in 2008.


The number of companies that "use offshore services whenever possible" also grew to 16 percent, up from 10 percent in 2008.

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Nov 17, 2009 11:25 AM 2009mrcrmsales 2009mrcrmsales  says:

Outsourcing coming to an end, I will believe that when I see the VC $$$ drying up. Check out all the new startups.


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