25 Aug 2009

UK Offshoring Data-Analysis

BANGALORE, INDIA - APRIL 13:  A tutor talks on...Image by Getty Images via Daylife

TheITJobBoard contacted me and gave me some more data about an Offshoring Survey they conducted in the UK.

From the survey:

65.7% have outsourced part of their IT department to outside the UK in the last 6 months.
Out of the companies that have not outsourced, 3.3% plan to outsource in the next 6 months.

Here is a diagram that describes how much the companies would like to outsource their IT departments

From this chart we can see that people who have outsources more then 51% of their IT departments are quite happy to continue to outsource. While the late comers would also like to outsource a large chunk. And there are those that outsource but very slowly and carefully.

This diagram describes the types of positions that are being outsourced.

As you can see, the developer/testers and IT/Systems support are the jobs being "commoditized" the most. It is important to mention if a company is intending on outsourcing managerial and analyst positions, they fully intend on outsourcing the whole spectrum of positions.

The positions from the survey that are "safe" from being outsourced were: IT sales, IT training and IT consulting which accounted for 3% of the total positions being outsourced.

I wanted to show a trend with outsourcing certain positions. Here you can see that while developer/testers and support jobs are the largest part of positions that companies want to outsource, in 52% of cases, they would like to outsource both types of positions at the same time.

This to me shows that companies are interested to outsource whole parts of their IT departments and not just individual positions.

According to this survey, offshoring is due to increase in the UK.
I would not like to argue over the effects of this in the economy.
I would like to compare it to the manufacturing factories a few decades ago, which were all offshored to (mainly) Asia. Perhaps this might be a new trend with IT.

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