Potential Offshore Savings

(Amounts in millions)Annual IT Spending Potential Savings

2004 $20,600 $1,973

2005 $21,600 $2,047

2006 $24,192 $2,272

Carriers will fail to capture about $6 billion in savings over the next three years. This calculation is based on the assumption that 40% of IT spending not currently sent offshore was sent offshore, and 25% savings could be obtained from that strategy.

Source: Celent Communications

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