94% of CIOs Do Not Offshore IT Work, Finds Robert Half Technology Survey

By John McCormick

Despite the perception that American IT jobs continue to be farmed out to outsourcing companies around the world, Robert Half Technology this week reported that 94% of the chief information officers it surveyed do not outsource information technology jobs to non-U.S. firms.

It also found that among the companies that at one time had farmed out IT work to overseas firms, 59% had discontinued the practice because of the management challenges involved with overseeing these offshore operations.


Among the other factors cited by those who had stopped offshoring: Thirty percent said unrealized cost savings, 23% report quality control problems, 11% said it lowered in-house worker morale, and 6% cited security concerns. Multiple answers were allowed.

Lots of companies at one time looked at outsourcing as a way to cut IT cost. But big cost savings, for the most part, haven't been realized. As a money saver, says Robert Half Technology vice president John Estes, "it wasn't all it was cracked up to be."

Robert Half based its survey on telephone interviews with 1,400 CIOs in the United States.


In addition, the amount of work sent to offshore outsourcers isn't expected to change anytime soon as the majority of respondents—86%—said they did not expect to change their level off offshoring within the next two years.

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