For IT Services Professionals

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	May 14, 2004 Near-Term Growth Of Offshoring Accelerating Resizing US Services Jobs Going Offshore by John C. McCarthy with Christine Ferrusi Ross, Bill Martorelli, Christopher Mines, Adam Brown

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Executive Summary

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.

TABLE OF CONTENTS

• Offshore Visibility Has Increased

WHAT IT MEANS

• Offshoring Drives Focus On Services Processes And Costs

ALTERNATIVE VIEW

• Geopolitical Risk And Regulation Combine To Slow Offshoring
• Supplemental Material
• Related Research Documents

This is an excerpt