IBM ? tech’s outsourcer du jour ? could well be dabbling with offshoring itself, despite saying that the admission of honesty may not be the best policy when it comes to sending jobs abroad.

It looks like Big Blue could end up saving a hefty sum ? nearly $170m ? by using programmers in India, Brazil and China in the coming few years.

Despite protests from some firms, including Google, that quality rather than cost is the prime motivator when opting for offshore outsourcing, it looks like IBM’s accountants have their eyes on the cash. According to internal documents seen by The Wall Street Journal, labour costs alone could be slashed by a quarter in the event the company decides to employ Chinese, rather than American, workers.

The wages alone could prove a worthwhile saving for IBM, whose documents show that for a US programmer with three to five years of experience the hourly rate would be $56, but a Chinese equivalent would cost just $12 an hour.

IBM’s cost-analysis might be a little myopic, however. Eamonn Kennedy, senior analyst at Ovum, said that while the wage comparison is “attention-grabbing”, there are other key elements to take into account.

read the full story:
http://www.silicon.com/0,39024729,39117876,00.htm