AI tooling is changing the offshoring calculation for technical work, not just the headcount calculation.
Several enterprise technology buyers, surveyed by Gartner, report reopening offshore delivery contracts they had frozen or shrunk over the past two years.
Onshoring advocates argue AI-assisted work still benefits from proximity to the product team — the labor-cost argument for offshoring weakens exactly as AI narrows the cost gap it was built to exploit.
— Elena Cho