Newsletters Welcome, Guest Log In | Register

Business of Tech

Alignment, staffing and culture are often more critical than software and apps

About this Blogger RSS

Subscribe

Sign up now and get the best business technology insights direct to your inbox.

  • Daily Edge
  • CTO Edge Update
  • Business Tools & Templates
  • Aligning IT & Business Goals
  • Maximizing IT Investments

1

You Say Outsourcing, I Say Offshoring

Posted by Ann All Feb 25, 2008 12:13:45 PM

Like some other observers, I was a bit nonplussed when I saw results from a Robert Half Technology survey that indicated just 6 percent of U.S. companies send work offshore. While the number did rise to 11 percent for companies with at least 500 employees, both numbers seemed far too low based on the results of other surveys.

 

CIO Insight blogger Brian Watson, for instance, points out that a spring 2007 survey conducted by his publication found that 45 percent of respondents had worked with offshore services providers in 2006 or planned to do so in 2007.

 

Watson attributes at least some of the difference in the numbers to "semantics." Many companies that work with providers like IBM and Accenture may not consider that offshoring, he says -- even though chances are exceptionally good that at least some of the work is done in India or other offshore locations.

 

This same idea is reinforced by Wall Street Journal blogger Ben Worthen, who writes that "not one" of the industry insiders he's asked about the survey -- including a Robert Half executive -- believe the Robert Half numbers to be accurate.

 

No one is being deceptive or misleading here. It's simply a sign of how deeply ingrained the concept of globalization has become in the fabric of modern business.

 

Remember all of those debates a decade ago about whether certain cars were made in the USA? Thanks to the the U.S. operations of Japanese manufacturers like Honda and Toyota, some "foreign" cars seemed more "American" than those of their domestic counterparts, who were sourcing parts from other countries.

Add a comment Leave a comment on this blog post.
Mar 4, 2008 3:56 AM Guest Vijayashankar  says:

This clearly shows that not all activities are getting sent out of USA for work. 5 or 6 percent is very minimal. But there are cost leveraging advantages too!. To overcome this USA govt should be more liberal in giving tax concessions for businesses for training the locals on software and IT related trainings. Also the visa for work restrictions, may please be removed. If someone talented comes in from abroad, he or she would be able to survive only if there is good quality of workmanship, without which they would not be able to survive in this highly competitive world. Also those who come in to USA, would spend most of their earnings back into the society, helping to churn the economy in a better way. The time taken to explain requirements would be saved, if the same person is brought in at a highly competitive prevailing local wages.

Software Forum: Information On Demand Virtual Experience

This interactive virtual forum presents leading IT experts providing the insights you need to turn your information into a strategic driver for innovation, business optimization and competitive differentiation.

Performance Under Pressure: The State of Enterprise Web Application Quality and Availability

This research study finds that Web application issues are an all-too-common problem and examines these Web-based enterprise application issues from two perspectives: that of an online customer and that of a site manager.

Social Media Policies Toolkit

Define the rules at your company for the proper use of social media platforms such as Blogs, Twitter, Facebook and Youtube. Ensure your users are spending their time productively and company resources are being used for the business.

Learn more >

Budget & Finance Toolkit for IT - 2010 Edition

What kind of year are you planning in 2010?  Growth or continued "survival mode"?  Download a comprehensive collection of templates, forms, instruction and advice that will help you to plan and submit your 2010 IT Budget.

Learn more >