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Dissatisfied US offshorers looking at alternatives: DiamondClustert survey news
Our Infotech Bureau
18 June 2005

As a host of developing nations with IT-savvy workforces benefit from offshored job contracts from developing nations, they need to be wary of the growing trend among offshorers to prematurely terminate contracts because of growing dissatisfaction. Termination of contracts within the last one year has trebled from 17 per cent to 51 per cent

Offshorers are now steadily in favour of setting up operations in China says the third annual global outsourcing report by the Chicago-based consultancy firm DiamondCluster International, which has operation in Europe, Middle East and Latin America.

The report, titled 2005 Global IT Outsourcing Study, reveals that in 2005, 40 per cent of buyers expect to outsource some IT functions to China over the next three to five years. In 2004 only six percent of outsourcing decision makers had been in favour of outsourcing to China.

The study was led by Thomas Weakland, a partner with DiamondCluster International, and a frequent commentator on globalisation and IT outsourcing issues in the US, who heads DiamondCluster's global sourcing practice.

"Many buyers are now several years into at least one outsourcing relationship, but they still lack effective measures to gauge the success of their outsourcing initiatives, which are critical for knowing and getting what you want," Says Weakland who talked to senior level IT managers from among the top global 1,000 corporations.

 

also see : US offshorers enamoured of China

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Dissatisfied US offshorers looking at alternatives: DiamondClustert survey