U.S. IT companies send their jobs offshore and not going to cut IT budgets.
SIM’s (Society of Information Management) survey shows that offshoring has become so engrained in IT processes that 65% of businesses do it for some aspect of their business. SIM has published it’s annual survey of IT budgets and technology trends last week.
Based on data collected from CIOs and senior IT leaders at 275 companies, survey found that nearly a quarter of the companies using offshore services did so to run existing systems applications. And another 20% said they used offshore services to manage their infrastructure.
The other good news for offshore IT service providers is that companies aren’t cutting IT budgets. Last year, 65% of the firms responding to this survey said their budgets would be equal or greater to the previous year. That increased to 83% this year, and 85% of the respondents said next year’s budgets would be equal or better than their current budgets.
Thanks Patrick Thibodeau for the article Two-thirds of U.S. tech firms send jobs offshore, survey shows and to Society of Information Management for this wide-ranging survey.
The top management concern is business alignment; the last concern, in the list of 10, is IT cost reduction. The reason IT cost reduction is such a low priority is that many companies are trying to leverage IT to reduce costs instead of cutting IT to save money.
The other IT priorities, in order, were business agility, business process management, IT strategic planning, IT reliability and efficiency, enterprise architecture, security and revenue-generating IT innovations.