| Topic: |
Politics > Politics-USA |
| User: |
"Your Special Friend" |
| Date: |
09 Jan 2004 06:35:13 PM |
| Object: |
Most Fortune 1,000 Companies Aren't Outsourcing Offshore |
http://www.webcpa.com/WebCPA/index.cfm/txtFuse/dspShellContent/fuseAction/DISPLAY/numContentID/44348/numSiteID/12/numTaxonomyTypeID/10/numTaxonomyID/937.htm
Report: Most Fortune 1,000 Companies Aren't Outsourcing Offshore
Cambridge, Mass. (Dec. 31, 2003) -- Despite the hype surrounding the
mass exodus of IT jobs to cheaper workers overseas, the majority of
Fortune 1,000 firms in the U.S. haven't jumped on the offshore
outsourcing bandwagon, according to a report by Forrester Research.
Forrester reported that 60 percent of the U.S.'s top companies aren't
spending any of their IT services budget offshore, and only 5 percent
of the Fortune 1,000 are taking full advantage of offshore
outsourcing, with offshore spending that ranges from 40 percent to 50
percent of their IT services budgets. According to Forrester, 25
percent of firms are in the experimentation phase -- they have
relationships with offshore vendors for small projects but have yet to
make it a key element of their IT strategy.
Another 5 percent to 10 percent of Fortune 1,000 companies are using
offshore suppliers for more complex applications and mission-critical
development services and typically spend 10 percent to 30 percent of
their IT services budget offshore, according to the report, "Users'
Offshore Evolution and Its Governance Impact."
Forrester said companies with no overseas experience perceive the
issues holding back offshore investment differently than those firms
with offshore IT or business process outsourcing expertise. In
addition, Forrester said firms in each stage of the outsourcing
process have different challenges that require suppliers to address
unique security concerns, program management needs, and best
practices.
-- WebCPA staff
December 2003
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