Firms 'shun offshoring'

29/01/2008

The majority of businesses in Canada are unlikely to outsource information technology (IT) jobs outside of the country, according to a new survey by IT information provider Robert Half Technology, in news which may be of interest to UK firms considering outsourcing.

A total of 85 per cent of chief information officers revealed they do not outsource abroad, while eight out of ten do not expect to increase their offshoring activity over the next year.

Katherine Spencer Lee, executive director of the company that undertook the research, said keeping IT functions close to home can help establish "nimble" work groups.

"Challenges such as language, culture and time-zone barriers can sometimes outweigh the potential benefits of outsourcing," Ms Lee added.

"Smaller companies, in particular, may lack the resources to commit to an effective long-term offshoring strategy."

Earlier this week, figures published on the TPI Index indicated outsourcing in Europe - calculated in terms of the number of contracts and the total value of them - remained robust.

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