Forbes: Outsourcing "here to stay"

We've only just begun - to be outsourced, that is.

An article in the April 17th Forbes magazine makes this point. Not only is offshoring here to stay, its growth and scope is accelerating. Consider these points from the respected research firm Gartner:

• Offshore IT spending will triple in six years, and near $60 billion by 2010
• Engineering Design "will be the next big wave of global sourcing options"
• Spending on outsourced R&D and engineering will grow 10x in the same period

The reason? Cheap labor. $10,000 can hire an educated India worker vs. $40,000 for an entry-level U.S. worker.

Initially confined to data entry and call center work, the expansion of scope is not limited to software development. Some corporations outsource entire functions: IT, accounting or other backoffice work. More sophisticated services are now targeted: designing chips, auto parts and aircraft wings. SPI Technologies in the Philippines is doing legal analysis for a large U.S. legal research firm.

The article is free, and available to nonsubscribers:
http://www.forbes.com/free_forbes/2006/0417/074.html

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