Trends, Implications, and Responses to Global IT Sourcing: A Field Study

Abstract

Despite the furor surrounding the offshoring phenomenon, there is little empirical research examining global IT sourcing (GITS) and its potential impacts on the individual, the organization, and society. This article presents the results of a study of the perceived direction of GITS in the United States and its implications for business. Based on information collected from structured interviews with senior information systems executives at ten medium to large corporations in the region, the study specifically examines their perceptions of offshoring trend, its implications for the IT workforce, and steps that must be taken to remain competitive in the global marketplace. Nine of the ten company executives interviewed indicated a slow but steady growth in the level of such offshore engagements and an increasing commitment to strategic partnerships with global information service providers. The primary drivers of offshoring partnerships were cost, access to expertise, and domestic headcount stabilization. Significant concerns were expressed as to the nature of computer science education in the United States and a need to shift from technical skills to those that focused on business domain knowledge.

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