Industry Headlines

Study Finds Outsourcing Losing Favor

CHICAGO-- According to a study by BDO USA, LLP, an accounting and consulting organization, 35% of U.S. technology companies surveyed are currently outsourcing services or manufacturing to companies outside of the United States. This represents a 43% decrease from the 2009 high when 62% of companies were outsourcing and a slight decline from 2010 (37%).

The study of 100 CFOs also found that of the companies who are not currently outsourcing (65%), the majority would not consider outsourcing beyond their backyard (58%), either choosing the United States. (25%), Canada (13%), or indicating no plans to outsource at all (20%). And while some U.S. regulations have CFOs concerned (83% note concern with the changing national tax landscape), jobs and operations are not expected to head overseas any time soon.

“Outsourcing can be looked at as a bellwether of the economy,” said Don Jones, partner in the technology and life sciences practice at BDO. “Tech companies turned to outsourcing in 2009 in order to reduce operating costs and ride out the recession. Since then, we’ve seen a marked decrease as companies recover and look to create jobs and growth close to home.”

These findings are from the fourth-annual BDO Technology Outlook Survey, which examines the opinions of 100 chief financial officers at leading technology companies located throughout the United States. The survey was conducted in January, 2011.

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