Offshore Outsourcing: Current and Future Effects on American it Industry

Abstract

Outsourcing has taken on new meaning for the American IT industry. Although most companies have outsourced selected IT projects and functions for many years, the growth in offshore outsourcing has exploded in size as companies have sought lower labor costs and other benefits. This article synthesizes recent published reports to provide an overview of the status of offshore IT outsourcing and some current and projected effects on the American IT industry. [Editor's Note:for discussions of management issues associated with offshore outsourcing, see the Summer 2004 issue ofInformation Systems Management.]