Industry Trends in Engineering Offshoring
Companies see many challenges in offshoring work, yet gain enough benefit for the trend to continue and most expect their overseas operations to expand.
Engineering jobs are being offshored to countries like India and China, and the trend seems to be gaining momentum. It is not clear whether this will erode U.S. competitiveness or provide long term benefit. What is clear is that there is insufficient independent research on this topic. Here, we delve into some of the offshoring experiences of leading American corporations. This report summarizes data collected from 78 division representatives at 58 U.S. based companies involved in engineering offshoring. We discuss their experiences in hiring engineers, the perception of the productivity and quality differences between U.S. engineers and those in China and India, and future trends in offshoring.