News: U.N. report: Economic pressures push outsourcing:
"Companies in the United States and Europe will continue to move information technology work offshore even though they don't fully understand the costs and benefits of doing so, according to a report released by the United Nations this week. "

The study, released by the U.N. Conference on Trade and Development (UNCTAD) on Thursday, found that companies in the United States and Europe are looking for competitive advantages and cost-cutting measures when they look to developing countries for IT outsourcing.

And to some degree, they're finding it, even though the level of service in many countries is still low. The UN agency said offshore outsourcing has been successful in India. Services providers are also starting to gain a foothold in other developing countries, including Bangladesh, Brazil, China, the Philippines, Romania, Russia, Singapore, Thailand, Venezuela and Vietnam. As those countries improve their service levels, outsourcing business there should rise, the study found.

http://zdnet.com.com/2100-1104_2-5110625.html