February 17, 2012: According to a recent survey conducted by BDO USA, there has been a decline in the outsourcing activity in the United States technology industry for three consecutive years. BDO USA is an accounting and consulting firm. The survey covered 100 CFOs from technology companies and only 32 per cent of them responded that they now outsource services or manufacturing activities to service providers outside the United States. This indicates a major shift from 2009 when about 62 per cent of the companies were outsourcing to service providers outside the United States.
As the technology industry is bringing jobs to the US, the companies are looking forward to gather workforce to support their operations in the country. The survey has found that fifty per cent of the Chief Financial Officers who were surveyed plans to recruit more employees in 2012. There is a positive sentiment that technology jobs will remain in the US during the year. Another important observation made in the study is that among the countries that do not plan to outsource currently, 80% of them says that they are not going to outsource manufacturing to offshore locations in the near future.
The unemployment rate of 8% in the United States is an issue of major concern and so the government is taking tough measure which is mounting pressure on the companies to bring back jobs to the United States. This is the reason behind the technology industry’s move and this is good news for the job seekers in the country. Sources from BDO says that this is an intelligent move by the technology industry as it will enhance the quality of service and reduce the exposure of global risks and problems with the supply chain.
In 2011 manufacturing was the most outsourced activity (53%), but it is estimated that the share of manufacturing among the outsourced activities will reduce to 33% in 2012 making it the least outsourced activity. Among the 32% of the companies that are currently outsourcing, Information Technology (62%) and Research and Development (51%) are the most outsourced functions. It is also observed that there is an increase in the companies that outsource call centre functions (from 12% in 2011 to 37%).
India has made a comeback in terms of popularity as a favourite outsourcing destination, with India leading the pack. 69 per cent of respondents observed that they outsource to India, a major increase from 29 per cent in 2011.