Vast Majority Of U.S. Companies Don't Offshore IT Work - InformationWeek
IoT
IoT
Business & Finance

Vast Majority Of U.S. Companies Don't Offshore IT Work

A survey of 1,400 CIOs by Robert Half Technology found that only 5% of CIOs said their companies have offshored technology jobs.

Think everyone is offshoring IT work? Think again. A survey released Wednesday reports that 94% of CIOs say their companies are not currently outsourcing IT work outside the U.S.

A recent phone survey of 1,400 CIOs conducted by staffing firm Robert Half Technology found that only 5% of CIOs said their companies have offshored technology jobs, while 94% said they companies have not. One percent wasn't sure.

Who is outsourcing tech jobs outside the U.S.? Companies with more than 500 employees are most likely to offshore. About 11% of those larger companies offshore, compared with only 5% of companies overall.

Companies that are currently offshoring also tend to be the ones that plan to increase their offshore outsourcing in the near future. Forty-three percent of those companies that do offshore said they plan to ramp that activity up over the next two years. However, 13% of those companies plan to decrease their level of offshore outsourcing.

Why do companies quit offshoring? CIOs at firms that had offshore outsourced in the past -- but discontinued the practice -- said the biggest challenges were in managing the arrangement. Fifty-nine percent said offshore engagement required too much oversight or management.

Unrealized cost savings was the second top disappointment, with 30% of CIOs at companies that discontinued off-shoring citing that reason.

Twenty-three percent weren't happy with the quality of work, and 11% said off-shoring lowered the morale of U.S.-based workers. Six percent cited security concerns.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2018 State of the Cloud
2018 State of the Cloud
Cloud adoption is growing, but how are organizations taking advantage of it? Interop ITX and InformationWeek surveyed technology decision-makers to find out, read this report to discover what they had to say!
Commentary
The Staying Power of Legacy Systems
Mary E. Shacklett, Mary E. Shacklett,  4/15/2019
Commentary
Q&A: Red Hat's Robert Kratky Discusses Essentials of Docs
Joao-Pierre S. Ruth, Senior Writer,  4/15/2019
Commentary
How Cloud Shifts Security Balance of Power to the Good Guys
Guest Commentary, Guest Commentary,  4/11/2019
Register for InformationWeek Newsletters
Video
Current Issue
A New World of IT Management in 2019
This IT Trend Report highlights how several years of developments in technology and business strategies have led to a subsequent wave of changes in the role of an IT organization, how CIOs and other IT leaders approach management, in addition to the jobs of many IT professionals up and down the org chart.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll