Outsourcing Declines for Third Straight Year

Just 32 percent of companies say they currently outsource services or manufacturing to organizations outside of the U.S., according to a survey of 100 CFOs from leading U.S. technology companies by BDO USA, LLP.

This marks the third straight year of declines and a shift from 2009 when 62 percent of companies said they were outsourcing. Better still, among the companies not currently outsourcing, 80 percent say they are unlikely to outsource services or manufacturing overseas in the near future.

For the second year in a row, Houston was named as the top city for IT employment. This time, the accolades come from Modis, an IT staffing firm which recently released its list of North American cities with highest potential for IT job growth in the coming year, based on the volume of job openings over the past six months, as well as general assessment of the overall economic environment in each market.

Houston employers are looking for network engineers, project managers, business analysts and Java and .NET developers, while employers in second place Toronto are looking for project managers, Java developers and professionals with SAP or CRM experience to work in the financial services, government, systems integration and consulting industries.

Orlando, Fla., came in third where employers are looking for IT healthcare professionals and telecommunications specialists as well as help desk representatives, network administrators and software engineers.

Other top cities include San Francisco, Minneapolis, McLean, Va., Walnut Creek, Calif., Detroit, Jacksonville, Fla., New York, Denver and Boston.

16 Responses to “Outsourcing Declines for Third Straight Year”

  1. NeedJobSearchTips

    If the business is slow and considering the damage on their image, I am not surprised that companies do not outsource, at least in their reports to media.
    In any case – if one wants to work for a company with strong traditions in off-shore outsourcing: you’re getting your salary AND you’re at your own CAREER risk!!!

  2. Outsourcing seems to be declining because companies setup their own offices in countries like India, China and also in Europe. They are not outsourcing per se but the bulk of their work is done in other countries.Hence it’s misleading to think that outsourcing is declining. It’s only flourishing in another form.More and more services jobs, specially the IT jobs are going to foreign countries.

  3. There is nothing left to outsource. They have outsource everything. Business demands are down.What new they are going to outsource? They have established everything in the foreign countries. All their channel of communications are working 24*7 between U.S and foreign countries.
    There is nothing left to outsource.Soon, they will start loosing money because their will no demand.Demand = %employment. If people have not jobs and money to pay credit, business will suffer.

  4. IT outsourcing if anything is on the rise. Like what has been pointed out earlier, there are captive centers in countries like India and China where bulk of the IT work is done. The fact of the matter is large corporations have realized that in order to stay competitive outsourcing is the way to go. There is a push to let go of full time, highly salaried, in-efficient employees and replace them with outsourced workers. Companies have realized that with outsourcing they can achieve a better product at fraction of the cost and given this proposition I find the news of outsourcing on the decline as very mis-leading!

  5. There was a time when patriotism was a factor in business decisions. With the economy we’re in there should be a government incentive to keep jobs here or a tariff to discourage outsourcing. The United States gives a full ride to foreigners who come here for graduate school and then they take that education back to their home countries. Ridiculous.

  6. I agree with the other comments – outsourcing is not slowing down. It is slowing down because there is nothing left to outsource or business is slow. Once the economy picks up, outsourcing will pick up. I should know – I work for a large pharmaceutical company and the company continues to outsource left and right while hiring in the US is stopped. Hell, there is even a mass layoff in the future. How about that America?

  7. Recently, I was working in a company in IT department. They kicked me out you know why? Because they brought IT worker from India for cheaper price.
    My interviews were excellent but they hired only the IT people with a H1 visa. If you are a US Citizen then you have a less chance to get into an IT job. Do you know who makes the decision to hire a candidate? Indian (H1 visa) IT manager. They hire the people only within people from their own circle. Interviewing process is just a fake and this is just showing to HR.
    Company should not hire people who have a degree and work experience from outside of US in their resume(mostly is fake).
    New graduate students(US Citizens) are going to suffer very quickly if we don’t pay attention to these. WE SHOULD STOP OUTSOURCING.

  8. Boy are Americans clueless – I have worked in over 100 companies across the US in every size and Indians Rule – they have taken over as Recruiters, employees and managers – there is no company in the US (except maybe government) where Indians are not the majority of the staff – No one article can tell me different –

    I am a PHD Candidate whose dissertation will unveil the real truth

    • Wow!! I totally agree with you. My cousins are going to graduate with Computer Engineering next year. They could not even found an internship. They have a huge loan.
      I myself is still struggling to find a job in IT. Thanks god, I started landing my first job in a government sector(only US Citizen)
      We sit and complain our experience but can’t do anything.
      When you stand near the office of Bank of America in NY, you feel like you are in India.