It has also reduced our IT workforce, creating serious risks to our national security.
But the research also says that the damage is not irreparable. It's possible to repair the damage by bringing IT operations back to America. And businesses can even stay profitable doing so.
Over the past 10 years, outsourcing IT services (such as software development, network support and supply chain management) to other countries, particularly Asia, became a guaranteed cost-saver while maintaining solid ROI. However, over the years several factors have counterbalanced those cost savings.
Lower Cost Savings, Higher Risk
The White Paper is titled, "The Argument for ReShoring IT: The Risks of Outsourcing Offshore, and Why 'IT ReShoring' is Growing." It documents over 20 sources showing the risks that American businesses open themselves up to when offshoring IT.
For example, sending any sort of IT work offshore decreases the security of private business data and IP. 69% of IT managers in a survey pointed to this risk as a negative for offshoring. 61% of companies reported a data breach.
Are the cost savings really drying up? Again, it appears so. With rising wages for IT services in Asia, and the many unexpected ancillary costs of contracting services offshore, we are reaching a cost point which may not support the effort needed to work with offshore firms.
ReShoring: Would Bringing Jobs Back to the U.S. Spell Doom …or Boom?
There's a new trend starting up, called "ReShoring."
"The Argument for ReShoring IT" favors reshoring for IT services like software development, support and component manufacturing. It lists out the benefits reshoring has, not just to businesses, but to local economies and national security as well.
"Clients have come to us after bad experiences offshore," says Doreyne Douglas, VP of Operations at PlanetMagpie IT Consulting, which created the white paper. "We're happy to help, of course. But we prefer to help them before they have a bad experience and are behind the eight ball. That's why we put together this White Paper. We're in favor of good solid IT work, done at home for local customers. And judging from all the sources we cited, we're not alone."
Download the White Paper, "The Argument for ReShoring American IT" at PlanetMagpie.com:
PlanetMagpie (http://www.planetmagpie.com) provides custom IT consulting, web development, network support and managed IT services for small business, mid-market and enterprises. They are headquartered in Fremont, CA, and serve the Bay Area, California and the USA.
Please direct all press inquiries to:
Doreyne Douglas, VP Operations, PlanetMagpie