Technology CFOs Choose U.S. as Future Outsourcing Location over China and India, According to BDO Seidman Survey

- International Expansion and Outsourcing Pulls Back in Technology Industry -
SAN FRANCISCO--(Business Wire)--
This year, according to the annual survey by BDO Seidman, LLP, one of the
nation`s leading accounting and consulting organizations, nearly two-thirds
(62%) of chief financial officers (CFOs) at leading U.S. technology businesses
say that their companies outsource services or manufacturing. However, the
survey results point to a likely decline in international outsourcing in 2009:
twenty-two percent say the United States is the outsourcing destination they are
most likely to consider in 2009, compared to sixteen percent for China and
thirteen percent for India. Another nineteen percent report no interest in
additional outsourcing.

"While last year may have produced an outsourcing bubble, 2009 will see
companies retrench to survive in the face of reduced demand. The United States
has become a far more viable option for them," said Douglas Sirotta, a Partner
in BDO Seidman`s Technology Practice. "This year we are seeing three global
factors that are causing U.S. technology companies to pull back from traditional
outsourcing locations, led by the recent boom and bust of the worldwide economy.
Satyam`s fraud case and the terrorist attacks in Mumbai are causing a lot of
companies to reconsider operating in India. And supply chain and shipping cost
issues in China are negatively impacting the attractiveness of outsourcing
technology operations to the Far East."

These findings are from the BDO Seidman 2009 Technology Outlook Survey, which
examine the opinions of 100 chief financial officers at leading technology
companies located throughout the U.S. The survey was conducted in January of
2009.

Other major findings of the 2009 BDO Seidman Technology Outlook Survey:

* Economic Climate Affects International Growth Plans. Less than half (42%) of
the CFOs indicate that they have operations outside the U.S., compared to nearly
double that amount (79%) last year. Nearly a third (29%) of respondents say
their primary concern regarding international growth is an uncertain business or
political climate. About a quarter (26%), cite international business and tax
regulations, with 21% citing currency risk, 14% intellectual property risk and
exploitation, and 10% training of international employees as their primary
concern.
* Current Outsourcing - Where? The most common non-U.S. locations for
outsourcing are India (50%), Southeast Asia, including the Philippines (31%,
down from 50% in 2008), China (19%, down from 46% in 2008), and Western Europe
(19%).
* Future Outsourcing - Where? When asked what one location they might consider
for outsourcing in the future, the CFOs most frequently cite the United States
(22%), followed by China (16%), India (13%), Southeast Asia, including the
Philippines (7%), Latin America (7%), Western Europe (6%), Canada (5%) and
Eastern Europe (3%).
* Outsourcing - What? Of those outsourcing, the most common functions being
off-shored currently are: manufacturing (54%), IT services and programming
(46%), research and development (35%), distribution (35%) and call centers
(35%).

The BDO Seidman 2009 Technology Outlook Survey is a national telephone survey
conducted by Market Measurement, Inc., an independent market research consulting
firm, whose executive interviewers spoke directly to chief financial officers.
Market Measurement used a telephone survey performed within a
scientifically-developed, pure random sample of U.S. technology companies in the
software, hardware, telecommunications, internet and information technology
services sub-sectors. The companies in the random sample had revenues up to $30
billion.

About BDO Seidman, LLP

BDO Seidman, LLP is a national professional services firm providing assurance,
tax, financial advisory and consulting services to a wide range of publicly
traded and privately held companies. Guided by core values including,
competence, honesty and integrity, professionalism, dedication, responsibility
and accountability for almost 100 years, we have provided quality service and
leadership through the active involvement of our most experienced and committed
professionals.

BDO Seidman serves clients through 37 offices and more than 400 independent
alliance firm locations nationwide. As a Member Firm of BDO International, BDO
Seidman, LLP serves multi-national clients by leveraging a global network of
1,095 offices in 110 countries. BDO International is a worldwide network of
public accounting firms, called BDO Member Firms. Each BDO Member Firm is an
independent legal entity in its own country. The network is coordinated by BDO
Global Coordination B.V., incorporated in The Netherlands, with its statutory
seat in Eindhoven (trade register registration number 33205251) and with an
office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the
International Executive Office is located.

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Copyright Business Wire 2009