In its report, BDO Technology Outlook Survey, accounting and consulting firm BDO USA reports that outsourcing in the technology industry has grown for the first time in three years. Of the 100 technology CFOs polled for the survey, 63 percent plan to outsource or manufacture goods in a foreign country. However, of the companies who currently do not outsource, 84 percent reported that their company was not likely to do so in 2013.
Even with the growing interest in outsourcing, 43 percent of tech executives still anticipate U.S. employment growth in the technology job market in 2013 and an additional 45 percent foresee the workforce remaining stable. Over 60 percent of tech CFOs predict that manufacturing will continue to be the top outsources function for tech companies despite the rise of U.S. manufacturing in other industries. Following manufacturing, the second most outsourced function is expected to be research and development (56 percent), followed by distribution (42 percent) and IT services and programming (30 percent).
“Despite an unemployment rate still hovering near 7.7 percent, the technology industry is rapidly growing, thanks to new technologies and trends like big data, mobile applications and cloud-collaboration,” said Aftab Jamil, partner and director of the Technology and Life Sciences practice at BDO USA, LLP. “While the drive to remain competitive has led technology companies to maintain outsourcing contracts, many are working in tandem to grow their U.S. workforce to develop new and innovative products and solutions in the U.S. while outsourcing traditional ‘back office’ operations.”