Study: 1 in 4 IT Jobs to Be Offshore by 2010
Monday, December 15, 2008 4:31 PM/EST
Plenty of companies have reasonable qualms about their offshore outsourcing initiatives, but make no mistake: offshoring is alive and well.
In two years, 25 percent of all IT jobs will be located outside the U.S. That's one of the more compelling findings in the Hackett Group's new (and not publicly available) study.
A total of more than 350,000 jobs in finance, HR, information technology and procurement will be farmed out overseas over the next two years, according to the study. About half will come in IT.
And businesses are seeing substantial benefits. Hackett says that by 2010, a typical Global 1000 firm will see annual general/administrative cost savings of more than $28 million, thanks to globalization.
But the economy still stinks, and those job cuts everyone feared are in the works. Hackett says almost one-third of companies polled say they've enacted a combination of hiring freezes and cutbacks in IT, the most-hard hit area overall.
I'll have more on the study in the next few days.
In the meantime, what is your company doing about offshoring? Increasing? Decreasing? Holding firm?
And is your firm seeing cutbacks or freezes? If so, which IT roles are being affected most?