A new outlet for outsourcing

Companies are looking for new ways to save money, and they may have found it: running data centers remotely. The reason is simple. As hardware prices fall, labor takes on a larger share of the costs. Companies must cut staff to save labor costs, according to the consulting firm, McKinsey. And it will lead to a big growth in one little-used outsourcing arena.

In McKinsey's 2006 survey, CIOs said that just 10 percent of their infrastructure roles could be off-shored. In 2007, that number rose to 27 percent. The report, sponsored by the India IT industry association Nasscom, estimates that at least 70 percent of infrastructure roles could ultimately be outsourced. McKinsey said there could be 325,000 jobs in India for infrastructure outsourcing. And that means that some work previously done domestically could disappear. Is this something you would consider? Let us know what you think about this leap-of-faith for outsourcing.

For more on this upcoming trend:
- See this InformationWeek article