Study: Comm. Companies Most Likely to Do IT Offshoring

April 6, 2004 ( - Communications companies were the most likely to send IT jobs offshore, according to a new offshoring study.

The report by Atlanta-based KnowledgeStorm, a business technology search engine, and The AlignIT Group, found that 23.6% of companies surveyed said they made use of IT offshore services. Of that group, use of offshore services varies widely by industry, from a low of 9% to a high of over 34%.

Specifically, 34.5% of communications firms said they use offshore IT services while IT companies came in at the number two slot with 33.8%. Financial services outfits were third most likely to offshore jobs at 25.7% while retail/wholesale concerns followed up at 22.9%, according to the Corporate IT Spending and Offshore Services study.

The study also found that:

  • Large companies use IT offshore services 2.4 times more often than small companies and are more likely than small companies to use more offshore services in the future.
  • Health and Education and Public Administration organizations report that they’re increasingly disinclined to use offshore services. In the case of Public Administration (government) the aversion to go offshore may reflect recent political backlash and significant dissatisfaction reported with past use of offshore services, the study said.
  • 57.8% of users of offshore services are satisfied with them.
  • 42% of respondents indicate that they’re less open to using offshore services in the future.

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