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Execs Say Offshoring Likely To Keep Growing

Eight-six percent of executives surveyed by IT management consultant DiamondCluster International say they expect the use of offshore IT outsourcers to increase in the next year.

The burning political issue of offshore outsourcing is likely to get hotter if buyers and sellers of these services are men--and women--of their word.

Eight-six percent of executives surveyed by IT management consultant DiamondCluster International say they expect the use of offshore IT outsourcers to increase in the next year. Two years earlier, just one-third of corporate executives surveyed felt that way.

The study, released Friday, says IT outsourcing--domestic and offshore--maintains all the characteristics of a maturing business, with companies more likely to implement outsourcing initiatives incrementally as executives become more realistic in their expectations.

DiamondCluster interviewed 182 executives who either have outsourced or plan to acquire outsourcing services in the next year. In addition, the company interviewed 209 executives from outsourcing services providers.

According to DimondCluster's analysis of survey data, the outsourcing euphoria seen in the past few years has been replaced with a focus on sourcing as a business enabler. While reducing costs remains the No. 1 reason companies outsource IT services, the analysis says, freeing internal resources to focus on more critical initiatives has emerged as a key factor fueling the outsourcing trend.

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