Between 2005 and 2008, the number of American firms that employed an
offshoring strategy increased by more than twofold, according to a new
Data gathered by Duke University’s Offshoring Research Network in conjunction with the Conference board found that more than half of U.S. companies had put such a strategy in place last year.
In comparison, fewer than one-quarter (22 percent) engaged in offshoring activities just three years previously.
Among those businesses that do outsource abroad, 60 percent indicated that they are currently planning to expand their activities overseas.
"Outsourcing innovation in engineering, research and development, product and software development, and knowledge processes makes companies, whatever their country of origin, more competitive by increasing speed to market and compensating for domestic talent gaps," commented Ton Heijmen of the Conference Board.
The report found that product and software development were the most common reasons for companies to initiate outsourcing strategies.
It also noted that smaller businesses were more likely to turn to emerging areas – such as Brazil, Egypt, Sri Lanka and Russia – instead of the outsourcing.