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

By Jeff Goldman  |  Posted 11-23-2010
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Going global

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

CORRECTED:: According to a report from global strategic advisory firm The Hackett Group, 158,000 IT jobs in North America and Europe were displaced due to outsourcing in 2010. (Editor's Note: due to an error by Hackett Group, a previous version of this article contained an incorrect number of IT jobs outsourced. This version contains the corrected information.) It's important to note that the report includes only jobs associated with the provisioning of IT services internal to American and European companies. IT jobs in the tech sector itself, such hardware, software, telecom and service providers, are not in scope of this analysis.) But, there is good news for IT workers: the pace of IT offshoring will slow through 2014, even as enterprises step up the pace of offshoring jobs in finance and procurement. In 2014, offshoring will account for 114,000 lost IT jobs in North America and Europe. The research is based on data garnered from more than 250 in-depth benchmarks performed annually by Hackett, and supplemented by data from more than 350 companies participating annually in Hackett's online performance studies. Respondents are split evenly between the US and Europe, and about 20 percent of respondents are IT executives. The Hackett Group says the rapid growth of what it calls the Global Business Services (GBS) organization is driving much of the trend. The GBS typically has a global footprint and leverages offshore resources, enabling a realization of value via economies of scale, scope and skills. There's still a place in this new model for onshore white-collar workers who have experience in change management, program and product management, and other skills appropriate to a globally distributed, multicultural and virtually integrated organization.



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