Special Features

1 Forecast

Research on future technology trends or innovation

Trends

John C. McCarthy

May 14, 2004

Near-Term Growth Of Offshoring Accelerating

Resizing US Services Jobs Going Offshore

by John C. McCarthy

with Christine Ferrusi Ross, William Martorelli, Christopher Mines, Adam Brown

 


This is a document excerpt

EXECUTIVE SUMMARY

Length: 11 pages

Forrester has increased its estimate of how many US services jobs will go offshore in the near term. Long term, we believe that our previous projection of 3.3 million by 2015 is still accurate. The near-term increase is driven by a combination of the following four factors: 1) Visibility has encouraged more conservative companies to experiment with going offshore to protect themselves competitively; 2) a broadening of the IT services offered by offshore vendors like Wipro and Infosys; 3) the establishment of captive offshore centers by user companies for business process outsourcing (BPO); and 4) onshore IT technology and services vendors setting up shop in locations like India, China, and Belarus to develop/maintain products or provide lower-cost services.

List of Figures

This report includes the following figures, available in downloadable PowerPoint and/or Excel spreadsheet format.

Figure 1: Most Firms Are Not Planning On Using Offshore Resources

Figure 2: Firms That Already Offshore Plan To Increase Their Offshore Spending

Figure 3: Forrester's Methodology

Figure 4: Forecast: Resizing US Shift Of Service Jobs Offshore, 2003-2015

Figure 5: The Fortune 1,000s' Offshore Evolution, 2003-2008

TABLE OF CONTENTS

NOTES & RESOURCES

itemOffshore Visibility Has Increased

itemForrester Increases Our Near-Term Offshore Numbers

WHAT IT MEANS

itemOffshoring Drives Focus On Services Processes And Costs

alternative view

itemGeopolitical Risk And Regulation Combine To Slow Offshoring

itemSupplemental Material

Forrester interviewed 100-plus user companies and surveyed 1,800-plus North American business and IT leaders. We participated in 300 vendor briefings and received 400 inquiries on offshoring. Along with research from third-party sources, we made four trips to India.

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April 27, 2004, Trends

itemIBM Acquires Daksh To Bolster Offshore BPO Skills

April 9, 2004, Quick Take

itemAssessing Your Offshore Outsourcing Readiness

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itemUsers' Offshore Evolution And Its Governance Impact

December 4, 2003, Brief

item3.3 Million Services Jobs To Go Offshore

November 11, 2002, Brief