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 News Amazon to lay off 9,000 more workers, including some at AWS The latest round of Amazon layoffs will impact AWS, Twitch, advertising and PXT, CEO Andy Jassy said. By Jon Gold Mar 20, 2023 3 mins Technology Industry Cloud Computing BrandPost What’s next for network operations Broadcom: 2023 Tech Trends That Transform IT By Serge Lucio, Vice President and General Manager, Agile Operations Division Mar 20, 2023 8 mins IT Leadership Networking BrandPost Digital transformation obstacles: Stubborn challenges, what to do about them Value Stream Management is an increasingly essential approach to strategic transformation initiatives. To help teams more fully capitalize on the opportunities it presents, Broadcom is holding its third annual VSM Summit. By Marla Schimke, Head of Product and Growth Marketing, Broadcom's Enterprise Software Division Mar 20, 2023 3 mins Devops Software Development Feature CEO directives: Top 5 initiatives for IT leaders As organizations change course with economic gyrations, collaboration between IT and business becomes priority No. 1 for CEOs. By Stacy Collett Mar 20, 2023 7 mins IT Leadership 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