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12/28/2004

New Study Shows Companies Willing to Outsource More Jobs

A new study from Duke University and Archstone Consulting reported that over the next three years, the shipment of jobs and services outside the U.S. is expected to increase by "more than 50 percent" of the firms surveyed.

The study conducted on-line surveys to business leaders of world-class corporations who fall into one of the following three categories:

  • Currently offshoring
  • Currently considering offshoring
  • Currently not offshoring

The majority of the companies stated that they would continue to move jobs and services offshore despite political pressure in Congress.

Of the surveyed companies, the study found that:

  • 93 percent expected to cut costs
  • 55 percent expected to exceed projections on cost cutting
  • 72 percent expected to meet or exceeded savings

Of offshore operations, India led the way with 69%. In 2005, it is expected that India will continue to hold 65% of offshore business while 26% will go to the rest of Asia.

A study released in September by the Center for Urban Economic Development found that 400,000 information technology sector jobs have been lost since 2001 and that more than 281,000 jobs have been cut so far this year.

With the open-arms approach of the Bush administration and the present outsourcing trend, the prospect for good paying family jobs will likely continue to diminish.

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