Most U.S. Companies Plan More Outsourcing - Survey

Most U.S. companies plan to outsource more of its back-office functions overseas where labor is cheaper, despite a public relations backlash and weaker prospects for cost savings, according to a survey of 182 companies released on Friday.

About 86 percent of U.S. companies plan to increase the use of offshore outsourcing firms, according to a poll by Chicago-based management consulting firm DiamondCluster International.

But companies have lost the illusion of dramatic cost savings from outsourcing, the survey said, because managing far-flung international operations can be costly and difficult. They expect outsourcing to save only 10 percent to 20 percent of their costs, down sharply from 50 percent two years ago....

--Reuters

So it's full steam ahead, even though the benefits have been greatly hyped. Wake me when this starts leading to massive amounts of job creation in this country.