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Outsourcing in the U.S. technology industry has declined for the third straight year, a new study shows. Among the 100 U.S. technology chief financial officers polled, less than a third (32 percent) say they outsource services or manufacturing to companies outside the U.S. This decline in offshoring is likely to produce an uptick in domestic tech employment this year.
This marks a notable shift from 2009 when nearly twice as many companies (62 percent) were outsourcing, according to BDO Seidman, the accounting firm that conducted the survey.
As the tech industry moves jobs stateside, companies are looking to bolster their work force in 2012. In fact, 50 percent of CFOs plan to hire more employees this year. The outlook is positive for tech industry jobs to stay in the U.S. Among the companies not currently outsourcing, 80 percent report that they are unlikely to outsource services or manufacturing in the near future.
In a major shift, manufacturing went from being the most commonly outsourced function in 2011 (53 percent), 2010 (51 percent) and 2009 (54 percent), to the least outsourced function in 2012 (33 percent). The natural disasters that rocked Thailand and Japan in 2011, which caused major delays in supply chains that are still not fully remedied, are the likely contributors to this change, BDO Seidman said.
"With unemployment numbers still hovering above 8 percent, pressure is mounting from Washington to bring jobs home," said Paul Heiselmann, a BDO Seidman partner. "The tech industry seems to be moving in that direction, which is good news for U.S. job seekers. Bringing services and manufacturing back to the U.S. is also a smart move for tech companies looking to improve the quality of service and reduce exposure to international risks and major supply chain disruptions."
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