IT Best Practices

Bringing the Jobs Back Home: How ‘Re-shoring’ Is Coming to America

Microsoft wants more skilled foreign workers to enter the country. Apple announced its plans to have more computers built in the United States. IT seems to be finding the balance between offshoring and reshoring efforts.

According to this post by Ed Frauenheim, “the pendulum is swinging away from offshore labor strategies and toward a more home-grown approach.” What does this mean for IT? For one thing, it indicates a renewed interest in having support staff and coders on American soil. Furthermore, it indicates that many IT vendors might soon find themselves with an influx of business from U.S. companies looking for the cost savings of having an “outside” IT shop, but not willing to go across the planet to get it. In some cases this has to do with money, but in others, it has everything to do with public appearance:

Concern about its reputation may have played some role in Apple's decision. The company has come under fire in recent years amid reports that its outsourced labor force in China works under harsh, unsafe conditions in making hot-selling products such as the iPad. In addition, Apple's runaway success amid a still-tepid U.S. economic recovery has led observers including President Barack Obama to question whether it could locate operations in America.

The “sense of responsibility” might also explain why HCL Technologies, and India based company, is hiring in the United States. This reversal of roles helps solidify the idea that reshoring is in full swing, leading to more jobs and more IT being performed onshore rather than in the familiar offshore model we’ve seen in decades past.

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