Saturday, October 13, 2007

Offshoring impact in Canada


The Information and Communication Technologies Council ICTC announced today the release of two new reports that explore the evolving role of IT outsourcing and offshoring and the impact on Canadian business, human resources and competition. The reports offer important information and guidance to the ICT industry, a key driver of innovation and competition in Canada accounting for over 600,000 jobs and more than 5.9 percent of the GDP.

The import and export of ICT products and services have a significant impact on the demand for ICT workers in Canada. Key findings from the reports, titled Canadian Perspectives on ICT Outsourcing and Offshoring" and Canadian Information Systems Outsourcing ,Network and Desktop Outsourcing Services, include

1. Canadian buyers have become more comfortable with the notion of offshore services, more educated on offshore services and more firms have adopted offshore services.
2. Canadian buyers only require an average cost savings of 33 percent to source a service from offshore.
3. Current levels of outsourcing IT business services show that almost 50 percent of Canadian companies report outsourcing some aspect of IT or business process.
4. While traditional IT outsourcing is not diminishing in value, managed services are gaining traction and appeal to more than 50 percent of Canadian medium and large companies.

Outsourcing and offshoring are complex issues critical to the continued growth and competitiveness of our industry and workforce, says Paul Swinwood, President of ICTC. These reports offer insights and recommendations that will assist organizations in their strategic planning activities moving forward.

Most importantly, as key drivers of human resources in the ICT sector, both reports provide essential input into the much anticipated ICTC Outlook on Human Resources in the ICT Labour Market slated to be released in spring 2008. In the Outlook, ICT executives, educators and policy makers alike will find information on important trends and gain perspective on the future of the ICT labour force, including key industries and their human resource needs.