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Theresa Welbourne
  Theresa Welbourne
 

Three of Four Business Executives Outsource Company Jobs

5/7/2004 --

More than third of those who outsource send jobs to India; 15 percent outsource to China.

ANN ARBOR, Mich.– Three of four business leaders say they already outsource jobs or will outsource by the end of the year, according to a recent survey of more than 500 business executives polled by the Michigan Business School and eePulse Inc.

The Web-based survey found that among executives who outsource jobs, more than half send programming, other professional and service jobs overseas. Nearly half outsource administrative work and nearly 40 percent outsource manufacturing jobs.

India, by far, is the top recipient of outsourced jobs, with 35 percent of business leaders sending jobs there, the survey found. China (15 percent), Mexico (6 percent), Canada (6 percent) and Taiwan (5 percent) round out the top five countries.

However, most of the jobs at outsourcing companies still remain at home–94 percent of executives said that no more than a quarter of their company's total jobs are outsourced.

In addition, many business leaders in the survey indicated that companies should support their own country and use overseas outsourcing as little as possible.

"These comments may be a function of outsourcing efforts that are not going as smoothly as anticipated or it may be in response to the ongoing discussions about job loss," said eePulse CEO Theresa Welbourne, an adjunct professor of executive education at the Business School. "In today's global business environment, outsourcing is a phenomenon that is certainly here to stay. However, it's important that we all learn from each other and then do outsourcing in the most effective ways, at the right time and with the right types of jobs."



For more information, contact:
Bernie DeGroat
Phone: (734) 936-1015 or 647-1847
Email: bernied@umich.edu