Surprising Trends in IT Outsourcing

The head-long rush to use programmers in India is ebbing. CIOs are suddenly taking more of a “pick your spots” approach: some outsourced IT work may still be done in Bangalore, but some may be done in Detroit or Cleveland.

Why the change of heart? 

A recent Forrester report says the movement to domestic outsourcing is accelerating as software becomes a key differentiator for American business. “Clients require agility and also lightning-fast time-to-market,” the report says, without communication and time-zone hassles. Plus, in India, “prices are inflating, attrition is increasing, and quality is on the decline.” Yes, the U.S. labor costs slightly more, but that can be offset by the productivity gains.

This is just one of the big changes occurring in IT outsourcing. The following report will help you navigate the latest trends in this important market.