The article, Survey: One in Four IT Jobs Moving Offshore, posted on Networkworld.com, summarizes the key findings of this study conducted by a Miami-based firm.

Researchers found that over the next two years, companies with revenues of at least $5 billion are expected to transfer approximately 350,000 corporate jobs offshore.  More than 50 percent of these jobs will be in the IT sector, while some will be in the areas of finance, procurement and human resources.

Some experts believe that eventually 60 percent of IT jobs will be sent offshore and in some firms, this figure could hit 80 percent.  This data has been referred to as “a confirmation of a mega-trend.”

Another study that examined the impact of global sourcing on IT suggested that up to 8 percent of all IT employees have been affected in some capacity by offshore outsourcing.  That study collected information from 10,000 people.

There are many theories as to why there has been an increase in global sourcing within the IT industry.  One belief is that companies are becoming more experienced and comfortable when it comes to global sourcing and are more willing to send additional work offshore.  Many companies have developed standardized practices that have helped in the success of outsourced projects. 

Global sourcing is not expected to slowdown during the economic crisis and may actually increase as companies look for ways to cut costs, while still retaining productivity.  According to the article on Networkworld.com, the average company is currently realizing approximately $16 million in savings each year from global sourcing, with more than 50 percent of that amount in IT cost savings.  As global sourcing grows, the annual savings could reach $30 million by 2010.  Surprisingly, this figure only represents about a third of what companies could eventually save.

In order for companies to remain competitive, there has to be avenues to increase productivity, while cutting costs.  Global sourcing gives companies the opportunity to accomplish these goals, as well as focus on core competencies. 

A&E Consulting is a leading consulting firm that helps businesses take advantage of the many benefits offered through global sourcing.  The consulting experts at A&E Consulting help organizations choose the right global sourcing provider and will oversee the first outsourced project.

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