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Santa Clara University: Survey Finds Half of Silicon Valley's Outsourced Jobs Go to India
[September 29, 2005]

Santa Clara University: Survey Finds Half of Silicon Valley's Outsourced Jobs Go to India

SANTA CLARA, Calif. --(Business Wire)-- Sept. 29, 2005 -- About half of Silicon Valley's outsourced jobs are winding up in India, with other Asian nations and China trailing behind in the jobs race, say area managers recently surveyed by a team of faculty at Santa Clara University's Leavey School of Business. The survey has tracked outsourcing by regional companies over the last three years, and registered a slight decline in the number of companies taking jobs out of Silicon Valley last month.

"Outsourcing as a drain on area jobs seems to have leveled off," said Mario Belotti, the W.M. Keck professor of economics at the Leavey School of Business. "This leveling off is consistent with the latest monthly increases in the county labor force and civilian employment," he added. "Recent gains in both of these economic variables have been somewhat higher than similar gains for the U.S. as a whole."

The survey also gauges business optimism by asking senior managers and executives to compare conditions six months prior to the survey, and to project conditions six months from now. This month the index registered stable numbers for both current optimism and future expectations, with current conditions rated somewhat higher than six months ago (up modestly from 54.42 to 57.25). Future expectations were more modest, with the "forward" index moving from 57.08 to 57.33. Participants were surveyed the week of Sept. 18, during which Hurricane Rita threatened the Gulf Coast and energy related numbers reached near-record highs.

Since February 2002, the SCU Business Index (SCUBI) has asked managers and executives in a wide range of businesses in Silicon Valley to assess their business prospects for the next six months, and compared to the past six months, as well as current and future availability of jobs in their companies. It is managed for the Leavey School of Business by The Survey Company. Complete SCU Business Index results and methodology for August and earlier months can be found at

Media: Mario Belotti is available to comment on survey results and on business conditions in Silicon Valley. Call 408-554-5125 or 408-554-2162 to arrange an interview with him.

About the Santa Clara University Business Index survey

This monthly business indicator, the only one of its kind for the Silicon Valley region, is a composite index that every month tracks business conditions in Silicon Valley companies and their markets, as well as trends in job availability in the region, by polling the region's executives and managers.

About the Leavey School of Business

The Leavey School of Business at Santa Clara University began in 1926, and was one of the first business schools in the country to receive national accreditation. Its undergraduate business program is recognized as one of the best in California, and its MBA program is ranked 10th in the nation among part-time graduate programs for working professionals. More than 80 percent of its 1,100 MBA student body are working professionals in the Bay Area.

About Santa Clara University

Santa Clara University, a comprehensive Jesuit, Catholic university located in California's Silicon Valley, offers its 8,213 students rigorous undergraduate curricula in arts and sciences, business, and engineering, plus master's and law degrees. Distinguished nationally by the third-highest graduation rate among all U.S. master's universities, California's oldest higher-education institution demonstrates faith-inspired values of ethics and social justice. More information is online at

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