IDC: Offshoring IT keeps Canadian firms competitive

15.06.2012

The quality of the work, meanwhile, is "on par" with what the companies could expect within Canada, according to Schrutt.

However, says Trussell, offshoring these IT jobs isn't merely about saving money. Eventually, it's going to become a matter of economic necessity in Canada.

"People are not going to go to an India, Mexico or China if there wasn't some financial benefit," says Trussell. "But the reason that they're going to those places isn't purely because of the financial benefit."

Part of the reason is simply a shortage of IT professionals in Canada, he says. With a very low rate of unemployment in the industry, it's a seller's market. Not only is the workforce shrinking, but it's also getting older, he notes. Companies are "not going to be able to sustain that domestically and if they do, it's going to become very expensive," he says.

Offshoring is a sometimes controversial subject within Canada, especially amid a shaky economic climate. However, Schrutt suggests that within the IT industry, outsourcing is filling a critical need to have many low-level IT roles filled.