2005: A Big Year for Offshoring?

[OhioChick]

How big a deal is offshoring? Depends who you ask.

Research firm Gartner published a study Monday saying it "isn't as widespread as people think," with lower-cost locales accounting for less than three per cent of money spent on global information technology services this year.

Gartner projects that figure to grow but remain a relatively small fraction of total spending. By 2008, spending on IT services delivered through "global sourcing" will reach about 7 percent of a $728bn total market - or roughly $50bn.

A more bullish view came Thursday from NeoIT, a consulting firm that advises clients about offshore projects. NeoIT "foresees a big year for offshore outsourcing growth in 2005" and predicts that more than "80 per cent of the Global 2,000 will have an offshore presence by the end of the year."

http://www.silicon.com/research/specialreports/offshoring/0,3800003026,39126480,00.htm

Congress set aside 2 million to "study" the issue???