Ah, Barbados. Caribbean paradise, land of endless beaches, palm trees swaying in the ocean breeze, frozen drinks in pastel colors and information technology. Huh? Well, yes. As the economy in the United States continues to stumble, IT departments are looking for more ways to send their technology projects on a working vacation. Last year CIO wrote about offshore outsourcing (“Hands Across the Waters,” Sept. 15, 2000), a hot topic then because of the staffing shortage. Today, the biggest driver is the price tag. For example, Enherent, a Dallas-based IT solutions provider, contends that projects that go through its solutions center in Barbados (where the likes of J.P. Morgan Chase & Co. take their business) cost 30 percent to 40 percent less than what they would cost stateside. “Besides that, we have the ability to acquire the skills we need very quickly,” says Nigel James, Enherent’s general manager. “If the skill isn’t there, we can import it from Asia and anywhere else. That’s currently not so easy to do in the United States.” (To read about domestic outsourcing, see “Outsourced in America,” Page 86.) And, he adds, Barbados has advantages over offshore options farther away: English is the primary language, the dollar is accepted, and the plane ride from the United States is short. Other outsourcing companies can expect booming business from a slowing U.S. economy. According to a study from IDC (a sister company to CIO’s publisher, CXO Media), U.S. companies will spend more than $17.6 billion on offshore outsourcing in 2005. A recent poll conducted by Syntel, an outsourcing company with headquarters in Troy, Mich., found that the pace of sending projects offshore is increasing, and Gartner analysts also predict accelerating growth in the area. Cost is the number-one justification, with availability of resources coming in second. India remains by far the most-used country for offshore outsourcing. But as more companies like Enherent get off the ground, CIOs may have other options. And they may find themselves explaining to their bosses why they really need to go oversee the project. In person. Related content brandpost Sponsored by FPT Software Time for New Partnership Paradigms to Be Future-fit By Veronica Lew Dec 06, 2023 5 mins Vendors and Providers brandpost Sponsored by BMC Why CIOs should prioritize AIOps in 2024 AIOps empowers IT to manage services by incorporating AI/ML into operations. By Jeff Miller Dec 06, 2023 3 mins IT Leadership opinion Generative AI in enterprises: LLM orchestration holds the key to success In the dynamic landscape of AI, LLMs represent a pivotal breakthrough. Unlike traditional AI, which demands frequent data updates, LLMs possess the ability to learn and adapt in real-time. This mirrors human learning and positions LLMs as essential f By Shail Khiyara Dec 06, 2023 10 mins Generative AI Artificial Intelligence brandpost Sponsored by Freshworks How gen AI is joining the holiday shopping season One year after the launch of ChatGPT, the retail industry is embracing generative AI to deliver a variety of benefits By Elliot Markowitz Dec 06, 2023 4 mins Generative AI Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe