Offshoring Marketshare Shift

ComputerWorld ran an article earlier this month that provided an intriguing stat: According to "IT offshoring: It's not just for India anymore," India used to receive 80% of all US offshore spending; now that number is closer to 59%, according to Gartner analyst Frances Karamouzis. US companies spend $26 billion a year on offshore IT services alone.

If the money's not heading to India, where is it going? The Philippines gets about 9%; Canada and Brazil get 8% each; Central and Eastern Europe get 7%; Mexico, 4%; and China, 3%.

This isn't to say that India receives fewer offshoring dollars. Although the article doesn't touch on this explicitly, the offshoring pie has grown considerably in the last five years. So all of those countries are enjoying bumper years in the services industries. And Gartner predicts that that will continue. IT services growth is expected to expand from $18 billion in 2004 to $52 billion in 2007.