What Price Outsourcing
?"> What Price Outsourcing? As eWEEK reported in June, General Motors Corp. is in the vanguard of a "third wave" of outsourcing, which seeks to break the huge single-provider contracts of yesteryear into smaller, more manageableand profitablechunks. As a result, GM is spending $1 billion less on IT than it did in 1996, said GM CIO Ralph Szygenda.Dataquest Inc. reported in January that while only about 5 percent of 917 U.S.-based companies surveyed are using offshore resources for IT projects, offshore outsourcing will grow at a double-digit rate next year, well above the growth rate for U.S.-based IT services overall. Next page: Spam You Very Much
However, for many IT workers in 2003, the outsourcing wave hit home. Once one of the keys to cost cutting and growth, outsourcingparticularly offshore outsourcingbecame a lightning rod itself this year, with thousands of jobs heading overseas and millions more expected to go over the next decade. Some states even considered a ban on the outsourcing of government contracts to offshore providers.