ITSMA’s Buyer Views on Outsourcing and Offshoring provides detailed data on U.S. business buyers’ attitudes toward outsourcing, as well as the marketing implications for outsourcing providers. The report is based on an extensive survey of business and IT executives at large U.S.-based companies and public agencies. The report examines both IT outsourcing (ITO) and business process outsourcing (BPO).

Specifically, the report explores:

• The perceived benefits of outsourcing—whether outsourcing is viewed as a strategic or tactical decision and which specific business problems buyers are trying to solve
• Predilection to outsource—likelihood to enter into either an ITO or BPO contract over the next two years
• Preference for offshore vs. domestic service provision
• Experience with offshore services providers
• Perceived political and economic implications of offshore services

ITSMA’s research suggests that more than half the study respondents are likely to enter into ITO agreements over the next several years, and more than one third are likely to consider BPO deals. Taking advantage of these opportunities, however, will require ITO and BPO providers to develop sophisticated marketing strategies, especially given the business and political controversies surrounding outsourcing in general and offshoring in particular.

The report includes a series of recommendations for those firms considering or trying to expand their outsourcing offerings, including:

• The importance of vertical market and benefits-based segmentation
• The necessity of highly-targeted marketing campaigns
• The potential value of account-based marketing programs
• The need to treat offshoring as a capability rather than a value proposition in itself

Study Methodology
In Spring 2004, ITSMA conducted telephone interviews with 211 business and IT executives at U.S.-based entities who had been involved recently in the purchase of IT professional services. These 211 study respondents represent Fortune 1000 corporations and their divisions and subsidiaries from the manufacturing and financial services sectors as well as federal or state government organizations.

Respondent Demographics

Download an Abbreviated Summary PDF (176KB)
View Table of Contents PDF (132KB)
Download the report datasheet PDF (203KB)
Read “Offshore Tensions” from October E-ZINE