See our Outsourcing Provider Directory here

META Predicts Offshoring Will Continue to Grow at 20 Percent Clip Through 2008

Even though the US presidential election was full of sound and fury about offshoring, the political backlash has not deterred its market adoption, according to a new METAsprectrum report from Meta Group. “Corporations are trying to develop an offshore strategy in spite of the noise,” says Dane Anderson, Program Director with META’s Technology Research Services group.

The research group predicts the offshore outsourcing market will continue to grow nearly 20 percent annually through 2008. By that time META estimates “the average enterprise will outsource 60 percent of its application work offshore.”

The October report says several offshore outsourcers now exceed $1 billion in annual revenue. META estimates the total offshore market currently is greater than $10 billion.

Anderson says the “fear, doubt, and uncertainty” of the election has had a positive effect on offshoring. That climate has forced companies who are considering offshoring “to be more cautious.” This cautiousness has led to more in-depth research before making the decision, which typically promises better results down the road. “Companies are asking themselves, ‘How can we make this work effectively?'” he says.

Factoring in the Hidden Costs

The research has added some reality to the savings numbers that labor arbitrage can produce. “Today people understand that the rate is not the cost. They now know they have to factor in the hidden costs to the published rates to determine the true cost,” he explains.

Anderson says the research is clear–offshoring will not go away as a business practice in North America. According to the report, “The application and BPO markets are fundamentally about labor–both its cost and efficiency. With global resources costing one-third to one-fifth of American employees–without accounting for hidden costs–and higher process discipline (as measured by the Capability Maturity Model), offshore strategies now pervade North American IT organizations.”

Get 3 Free Quotes Logo

  • Save 70%
  • Unrivaled expertise
  • Verified leading firms
  • Transparent, safe, secure

Get Started

Book a Call Now Logo

Start your Outsourcing Journey in 15 seconds.

Get Started

Outsourcing

Dive into “Outsourcing”

A Guide to … Selecting the Correct Business Unit … Negotiating the Contract … Maintaining Control of the Process

Order now

Outsourcing Articles

Start your
outsourcing
journey here

"*" indicates required fields

Start your outsourcing journey.

Book a call with an outsourcing expert now

This field is for validation purposes and should be left unchanged.

"*" indicates required fields

This guide will walk you through some areas most important when outsourcing, such as
  • Identifying Your Outsourcing Needs Intelligently
  • Research & Selection
  • The Bidding Process
  • Contracts & Agreements
  • Implementation & Onboarding
  • Ongoing Management
  • Evaluating Success
  • Additional Resources

Book a call with an outsourcing expert now

This field is for validation purposes and should be left unchanged.

"*" indicates required fields

Become an OC Partner
This field is for validation purposes and should be left unchanged.

"*" indicates required fields

Media Inquiries for OC
This field is for validation purposes and should be left unchanged.

"*" indicates required fields

Subscribe to our Newsletter
This field is for validation purposes and should be left unchanged.

"*" indicates required fields

Submit Press Release
Accepted file types: pdf, doc, docx, Max. file size: 8 MB.
This field is for validation purposes and should be left unchanged.

"*" indicates required fields

Submit an Article
Accepted file types: pdf, doc, docx, Max. file size: 8 MB.
This field is for validation purposes and should be left unchanged.

"*" indicates required fields

Request Ben Trowbridge as a Keynote Speaker
This field is for validation purposes and should be left unchanged.

Go to standard quote

Exclusive Enterprise Assistance

  • Independent
  • Trusted
  • Transparent

Offshore staffing solutions for enterprise. Independent expertise, advice & implementation

  • 200+ Firms, Global Reach
  • Offshore, Nearshore, Onshore, Rightshore
  • Managed Request for Proposal (RFP)
  • Assisted Procurement Processes
  • Vendor Management
  • Unique Build Operate Transfer model
  • Captive & Shared Services
  • Champion-Challenger
  • Multi-site, multi-vendor, multi-source
  • Managed Solutions

For Enterprise and large teams only

  • Book 20-minute consult, obligation free

You will get:

  • Needs Analysis & Report
  • Salary Guidance & Indicative Pricing
  • Process Map

Only takes 1 minute to complete the form

Get Started

Not an enterprise?

Go to standard quote