Research firm Gartner published a study Monday saying "offshore outsourcing isn't as widespread as people think," with lower-cost locales accounting for less than 3 percent of money spent on global information technology services this year.
Gartner projects that figure to grow but remain a relatively small fraction of total spending. By 2008, spending on IT services delivered through "global sourcing" will reach about 7 percent of a $728 billion total market--or roughly $50 billion.
A more bullish view came Thursday from NeoIT, a consulting firm that advises clients about offshore projects. NeoIT "foresees a big year for offshore outsourcing growth in 2005" and predicts that more than "80 percent of the Global 2,000 will have an offshore presence by the end of the year."
Although the studies do not necessarily contradict one another, their differing tones reflect a broader set of conflicting opinions about the hot-button topic. Comprehensive information about the scale and impact of offshoring has been lacking, but Congress recently passed a bill that would set aside $2 million to study the issue.
