[biztech-discussion] Companies Pull Back on Offshoring--report

  • From: Ann Thryft <athryft@xxxxxxxxxxxxx>
  • To: biztech-discussion@xxxxxxxxxxxxx
  • Date: Wed, 11 Aug 2004 08:05:12 -0700

Aelera Report: Companies Pull Back on Offshoring; U.S.-Based
Alternatives Sought
Tuesday August 10, 9:49 am ET

ALPHARETTA, Ga., Aug. 10 /PRNewswire/ -- A surprising 9 out of 10 Chief
Executive Officers, Chief Financial Officers and Chief Technology
Officers from U.S. companies that currently offshore are considering
bringing work back home in the face of mounting problems and more than
45% of these executives want a U.S.-based alternative to offshoring,
according to a nationwide survey and 25-page report: Outsourcing IT:
Over Here vs. Over There - The Promise and Perils.

    Other key findings include:

     - Up to a third of companies reported major problems with their
       operations linked to travel costs, infrastructure, knowledge
       turnover, security, quality and cultural issues, and declining
       with employees at home.
     - While executives expected 30 to 40% savings from low offshore
       rates, actual savings ranged from -20 to 20%.
     - Approximately 1 in 10 projects were reported to cost more
offshore than

The nationwide survey was commissioned by Aelera Corp., an Alpharetta,
Georgia-based technology development services company, and was conducted
in June 2004 with more than 200 U.S. executives. Nearly three-quarters
of respondents were from companies larger than $100 million in annual
revenue and more than 25% of respondents were from companies larger than
$1 billion in annual revenue. A summary of the report is available at


Other related posts:

  • » [biztech-discussion] Companies Pull Back on Offshoring--report