IT Management Slideshow: 158,000 IT Jobs Sent Offshore in 2010

Going global

To make offshoring work, The Hackett Group suggests, three key value drivers are required: •Economies of scale•Economies of scope•Economies of skill

Economies of scale

Operations must be of sufficient scale to justify the investment in new management, facilities and technology.

Economies of scope

Expanding the portfolio of services offered is a good way to improve value&#151a center that processes invoices could conceivably offer transactional HR services as well.

Economies of skill

Common, knowledge-centric processes (i.e. some accounting functions, analysis and reporting, and strategic sourcing) are particularly suitable to being leveraged in dedicated service delivery organizations.

Standardization and commoditization

The ongoing standardization and commoditization of work is making it easier than ever to offshore and outsource many key business support processes.

59 percent

59 percent of companies surveyed say their technology support is currently global, and an additional 11 percent plan to shift in that direction within the next two years.

54 percent

54 percent of companies surveyed say their reporting is now integrated globally, with an additional 11 percent planning to do so within the next two years.

47 percent

47 percent of companies surveyed say global process standards are currently heavily used, with fully 23 percent planning on doing so within the next two years.