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By John McCormick

Despite the perception that American IT jobs continue to be farmed out to outsourcing companies around the world, Robert Half Technology this week reported that 94% of the chief information officers it surveyed do not outsource information technology jobs to non-U.S. firms.

It also found that among the companies that at one time had farmed out IT work to overseas firms, 59% had discontinued the practice because of the management challenges involved with overseeing these offshore operations.

Among the other factors cited by those who had stopped offshoring: Thirty percent said unrealized cost savings, 23% report quality control problems, 11% said it lowered in-house worker morale, and 6% cited security concerns. Multiple answers were allowed.

Lots of companies at one time looked at outsourcing as a way to cut IT cost. But big cost savings, for the most part, haven't been realized. As a money saver, says Robert Half Technology vice president John Estes, "it wasn't all it was cracked up to be."

Robert Half based its survey on telephone interviews with 1,400 CIOs in the United States.

In addition, the amount of work sent to offshore outsourcers isn't expected to change anytime soon as the majority of respondents—86%—said they did not expect to change their level off offshoring within the next two years.

Comments (6)

	1. 03-05-2008 11:31
	I would say that the survey is flawed. It makes no sense. I am in the Outsourcing industry and have seen steady growth in offshore services, the India Pure play companies have all had steady growth in the last 5 years and the Large Multi Nationals have expanded global operations in India and other lower cost regions. This would not be happening if the business was not growing, so somebody is using offshore, that is for sure. Guest

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	2. 03-17-2008 07:19
	this survey seems to product a false report about offshoring business, i m in the outsourcing company and have seen more and more progress in outsourcing business getting expanded in india. a large number of multi national companies have establised here to run their global operations at the lower cost. i would say they should survey authentically or again but to produce a genuine report the next time. good luck. Guest

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	3. 03-17-2008 23:58
	This survey unquestionably does not reflect reality!! I’m in the outsourcing company and do know follow growth of many outsourcing companies. There is a sound growth in this area – This information can be effortlessly seen in any of the financial reports published by these companies at regular intervals. Guest

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	4. 03-19-2008 08:24
	I am a IT student persuing Gniit course at NIIT,Residency rd,blore.  Thats why i chosse online job on it  based completely then i will more   comfortable for do that job. Guest

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	5. 03-28-2008 02:56
	the person who has written it doesnot know much about outsourcing and about the strategies of the company.The companies which wants to grow and survive in the market needs to outsource. Guest

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	6. 04-01-2008 09:26
	One key driver of a successful offshore model is to have a blended on and off-shore architecture and engineering team led by your on shore resources.On shore resources should conduct regular peer code reviews to limit risk and it provides them with a sense of ownership which quells potential morale issues. Guest

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