Outsourcing still growing: survey
Report shows business leaders overwhelming believe the movement of U.S. IT jobs overseas will grow.
March 26, 2004: 12:28 PM EST
NEW YORK (CNN/Money) - Despite the controversy over outsourcing American jobs to overseas locations, U.S. corporate executives expect the trend will grow over the next year, according to a survey of business leaders.
About 86 percent of the executives surveyed said they believe outsourcing information technology services to overseas countries will continue to increase, according to consulting firm DiamondCluster International.
"Executives have become more realistic in their expectations and are now more likely to implement outsourcing initiatives incrementally," said Tom Weakland, head of the firm's outsourcing advisory practice.
"While reducing costs is still the number one reason fueling the outsourcing trend, another key factor is that companies are looking to free up internal resources to focus on more critical initiatives," he added.
Outsourcing has become an increasingly hot topic in the 2004 presidential election as the job market has remained sluggish despite a rebound in the broader economy.