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Gartner says growth in IT offshoring no cause for panic

By Staff -- Manufacturing Business Technology, 1/1/2005 12:00:00 AM

U.S.-based companies probably will be sending about $50 billion worth of IT work offshore by 2007, but Stamford, Conn.-based Gartner says that will not significantly damage this country's IT job market.

Ben Ping, the Gartner VP who led the research on this topic, says numbers relating to IT offshoring must be placed in context. Although the $50-billion figure is roughly twice the amount of work currently being sent offshore, Ping says it represents only 7 percent of global IT spending. "It's a big leap from current numbers," he says, "but the overall market is so huge that it's not a seismic change."

Furthermore, Ping says, lower-end operational or programming jobs are still the most likely to go offshore, leaving a large number of positions for process architects and project managers at business unit headquarters.

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