Offshoring jobs a lessening trend.

• Position: YOUR LIFE - Survey

Most U.S. firms engaged in offshoring say a shortage of skilled domestic employees--not cost-cutting--is the primary reason why they move some job functions overseas. Moreover, manufacturers and high-tech telecommunications companies are less likely to establish offshore operations and are moving increasingly toward the use of third-party providers of offshore labor. These are among the findings of the sixth annual study on corporations offshoring trends by the Center for International Business Education and Research at Duke University. Durham. N.C., and The Conference Board. New York, an independent research association.

"Over half of the participants in our survey say offshoring has resulted in no change in the number of domestic jobs in most functions," relates Arie Lewin, professor of strategy and international business. "The finding that the U.S. software sector has the highest ratio of offshore to domestic employees--almost 13 offshore jobs per 100 domestic positions--may be a reflection of a scarcity of domestic science and engineering graduates in the U.S."

Survey respondents are broadening the range of factors that influence their selection of an offshore site to include the location of the best service provider and the quality of infrastructure. In spite of placing a high priority on cost savings and labor arbitrage, the survey finds average achieved cost savings offshore...