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Offshore Norm?

KnowledgeStorm recently released a research paper on offshoring with AlignIT. Entitled “Corporate IT Spending and Offshore Services,” the report takes an industry-by-industry look at offshoring and examines IT budget trends for 2003-2004. Among the key findings:

  • Large companies use offshore services 2.4 times more often than small companies and are more likely than small companies to use more offshore services in the future.
  • Top users of offshore services, by industry: Communications (34.5% of these companies say they use offshore services), Information Technology (33.8%), Financial Services (25.7%), Retail-Wholesale (22.9%)
  • “Health and Education” and “Public Administration” report that they’re increasingly disinclined to use offshore services. In the case of Public Administration, i.e. Government, the disinclination to go offshore may reflect recent political backlash and significant dissatisfaction reported with past use of offshore services.

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