To stay competitive, companies are finding new ways to automate operations, reuse technology, and streamline processes. Nearly 2 million U.S. computing jobs are forecasted to shift offshore over the next 10 years.

Services companies are under intense pressure to coax more productivity out of their staffs. After growing only 3% per year for the past two years, the $520 billion worldwide industry seems poised for a rebound. Getting creative while doing a lot of work in low-wage countries is a necessity for most tech-services outfits, it’s not the only way to trim labor costs.

Smart companies are coming up with creative ways of automating their operations, reusing valuable technology, and streamlining business processes. In this most labor-intensive part of the tech industry, they’re reducing the number of bodies they need for everything they do — whether it’s operating data centers, consulting, writing software, or running their clients’ customer-service and accounting operations. The changes not only make them more efficient, they result in more effective services.

Source: excerpted from BusinessWeek