Research: outsourcing anxiety has a cost

Can anxious IT organizations be productive? CIOInsight has an article and some research on the anxiety-inducing possibility that employee jobs will be outsourced. It concludes, not surprisingly, that low morale has a cost in productivity and loyalty.

The primary findings:

• Spending on outsourcing is picking up at large companies
• Offshoring is growing in popularity, but satisfaction with offshore firms lags behind domestic outsourcers.
• Employees' fears of losing their jobs to outsourcing is a growing problem.

The good news for IT employees is that roughly three quarters of the surveyed executives do not believe that outsourcing as a cost cutting strategy is a good idea.