IT offshore - Q1

IT offshore - Q1 - Adding to the increase is the...

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Offshoring of IT services has increased as a result of the global, web-based platform. Companies are now spending more on these offshored services than in previous years - largely because the costs allow for it. The emergence of the global platform has only made it easier to ship these services abroad. Specifically, as the technology and telecommunications capacity evolves it allows for much cheaper, efficient and timely exporting and importing of these IT services. The companies using these services are doing so because they can acquire the needed skills - and now thanks to the global network and telecommunications advances – can do so at costs that are dropping almost yearly. Essentially, the web-based platform is making this offshoring economically viable and irresistible to large companies looking to trim costs.
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Unformatted text preview: Adding to the increase is the recognition of this demand by countries, namely India who are now actively pursuing these international dollars by adding business and education programs tailored at capturing this lucrative piece of the IT market. Ultimately, however, had the emergence of the global, web based platform not been so extensive than it is likely that the $18 billion dollar figure quoted in the book would have not been quite as large as the costs and time needed to offshore would have been more prohibitive to businesses looking to cut costs. (Image copied from article on ZDNet and based on CIM survey. J, Hiner, 2008. “IT offshoring is exaggerated and the IT labor shortage is real” http://www.zdnet.com/blog/btl/it- offshoring-is-exaggerated-and-the-it-labor-shortage-is-real/ 10872 )...
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This note was uploaded on 04/11/2011 for the course ADMS 2511 taught by Professor Jiu during the Spring '09 term at York University.

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IT offshore - Q1 - Adding to the increase is the...

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