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     PRESS RELEASE
CONTACT INFORMATION:     



Barbara Hall (IDC)
416.673.2204 office
bhall@idccanada.com
www.idc.ca
     


Mark Schrutt (IDC Spokesperson)
416.673.2247 office
mschrutt@idccanada.com
www.idc.ca

New IDC Research Estimates IT Offshoring will contribute C$24B to Canadian Economy by 2018

- November 25, 2014 -

IT Offshoring is expected to contribute C$24B to the Canadian economy by 2018, according to the latest figures released today by International Data Corporation (IDC). The Economic Impact of IT Offshoring on Canada: An Executive Viewpoint, the first of its kind, measures the economical impact of IT offshoring on Canadian employment, compensation, productivity and the country's technical innovation and competitiveness in an increasingly global economy.

“There are multiple sides to the IT offshore debate, yet prior to this study, there had been limited research done in this area,” says Mark Schrutt, Research Vice President, Services & Enterprise Applications at IDC Canada. “IDC Canada set out to quantify the economic impact of offshoring on Canada and begin a fact-based discussion that we hope will contribute to organizations’ strategic decision making on outsourcing and offshoring, while assessing the future impacts that it will have on the Canadian IT industry.”

IDC's research on the economic impact of IT offshoring found that:

  • From 2001 to 2013, IT offshoring contributed C$15.1 billion to Canadian businesses, primarily in the form of cost savings.
  • In that same period of time, there was a negative impact of employment or approximately 12,800 jobs with a compensation total of C$4.1 billion.
  • IDC also estimated the projected economic impact to 2018 and determined IT offshoring would see further reduction of 4,450 to jobs, and a productivity benefit of C$17.8 billion.
  • In summary, from 2001 to 2018, IT offshoring will have a cumulative positive economic impact on Canada of C$24.1 billion.

Offshoring is a very sensitive topic and has only recently received more airplay in the Canadian press and boardrooms across the country. The results of the study set the baseline for future quantifiable, fact-based findings that will further the ongoing discussion of offshoring's place in the Canadian IT industry.

Mark Schrutt
QUOTE ATTRIBUTABLE TO MARK SCHRUTT AT IDC CANADA
border= "IDC’s research found that employment and productivity generated by IT offshoring contributed to the Canadian economy to the tune of C$11 billion by the end of 2013. We further project IT offshoring to add an additional C$13 billion to the Canadian economy in the next five years," says Mark Schrutt, Research Vice-President, Services and Enterprise Applications.

Please contact Mark Schrutt, or alternatively, Ask IDC, to arrange an interview and/or for additional quotes.

ABOUT THE IDC RESEARCH

The Economic Impact of IT Offshoring on Canada, Part 1 (IDC# CA12SSC14) is the first of a two-part series on the economic impact of IT offshoring on Canada. The first part discusses our methodology and the second part discusses IDC Canada's results. To accomplish this, IDC looked at a number of elements that were grouped into three factors, namely, jobs or employment, cost and productivity, and innovation, which includes globalization, higher education, and the Canadian IT industry itself. Offshoring sparks many fears including jobs, immigration, corporate, and social responsibility. While offshoring has been part of the Canadian business landscape for decades in areas such as manufacturing, it wasn't until 2013 that the Temporary Foreign Worker Program (TWFP) brought it to the front pages and made headlines for the 6 o'clock news in Canada.

The Economic Impact of IT Offshoring on Canada, Part 2: Facts, Figures, and Questions to Consider (IDC# CA13SSC14) is designed for analysts, researchers, and industry experts who are looking for quantitative findings and discussion around the economic impact of offshoring. Over the past decade, IDC has identified the increasing usage of offshoring, the benefits users were seeing from offshoring, and the extensive skills gap or capacity challenges Canadian CIOs are working under, but the ultimate economic impact of offshoring on Canada has been unclear.

IDC’s Economic Impact of IT Offshoring on Canada: An Executive Viewpoint (IDC# CA4EMC14) is a summary of IDC's two-part series on the economic impact of IT offshoring on Canada.

ABOUT IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

Follow us on Twitter: @idccanada

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