The backlash against offshoring will deepen over the
next few months, but will be consigned to the wastebasket of
history by the end of 2005, according to Craig Baty, group
vice-president, Gartner Group.
"Global sourcing [of IT services] is an irreversible megatrend
although its true impact is yet to be felt," he said during the
Regional Infocomm Conference.
"By 2006, we will see a reliable global sourcing market."
According to Gartner, the current backlash against IT offshoring
in countries such as the US and Australia - based on the notion
that offshoring causes IT job loss - is misguided.
According to Baty, a US government survey showed that IT
offshoring accounts for less than 5% of overall US job losses. The
Information Technology Association of America (ITAA) puts the
immediate job loss figure at 2.8%, while at the same time saying
that many other jobs are created.
The job loss debate is just a smokescreen to cover up less
attractive reasons for opposing offshoring, Baty said, adding that
by tthe time the offshoring market has matured, significant
consolidation will have occurred.
"About 60% of offshore outsourcing companies will fail within
three years," he said.
The offshoring industry will become more professional and the
proportion of outsourced IT service work sent offshore will triple
from between 2% and 3% now to between 7% and 10% by 2010, Baty
said.
David Legard writes for IDG News
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