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Why outsourcing isn't going away

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There have been some glum statistics surrounding outsourcing this year, including a 33 percent drop in sales in the third quarter, according to research firm Ovum. Despite the doom and gloom, there are five good reasons to believe that outsourcing will remain a staple in the enterprise, argues InformationWeek's Paul McDougall.

The first and most obvious is the cost savings that come from hiring relatively cheaper labor offshore, even as wages rise in popular outsourcing locales.

Second, is the ongoing difficulty businesses say they're having in finding enough tech workers with the right skills. In areas like data analytics, mobility and cloud computing, there continues to be a shortage in the domestic talent supply.

The third reason has to do with a demand for H-1B visas that far exceeds the supply. Businesses are willing to bring the work to the talent if the talent isn't allowed into the country.

Fourth, a global network of employees gives a company the capability of operating around the clock. What's more, offshore locations provide companies insight into the local markets.

Finally, cloud services aren't going away, and the cloud is outsourcing.

For more:
-see Paul McDougall's post at InformationWeek

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