IT Management Slideshow: IT Offshoring Set to Increase in Near Future Before Levelling Off

By Don Reisinger  |  Posted 04-10-2012
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IT departments in North American and European enterprises with revenues of more than $1 billion were hardest hit by offshoring among all the business services sectors studied in a recent report by The Hackett Group. IT experienced the largest decline in jobs (as a percentage of the 2001 baseline number of jobs), and also bore the brunt of reductions in absolute terms, of all business services sectors, according to the study . These cutbacks aside, the report finds that, as companies embed technology into an expanding range of products, new IT jobs in their product development organizations are being created. Finally, the IT industry (hardware, software and telecommunication) itself continues to grow, creating additional demand for IT workers. As a result, the picture of the IT job market is not nearly as bleak as it might seem at first glance, according to the study. Many enterprises went from "making" technology to "buying" it, with a sourcing model that changed from insourced to outsourced. This trend is irreversible, according to The Hackett Group, which posits that the rapid adoption of on-demand technology provisioning models such as software-as-a-service (Saas) is only accelerating the pace. Here are 10 highlights from the report.

Outlook 2016

In 2001, North American and European companies with revenues of more than $1 billion employed a total of about 8.2 million people in business services (including IT). By 2016, 3.7 million of these jobs will have been eliminated.
Outlook 2016
 
 
 
 
 

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