Sunday, March 12, 2006

Reasons for Offshoring changing

Increasingly, companies no longer perceive offshoring as a way of cost cutting only, but also as a growth strategy. Recent results of an ongoing survey by the Offshoring Research Inititiative finds the following list of reasons for offshoring:

  • Cost reduction (97%)
  • Growth strategy (73%)
  • Competitive pressure (71%)
  • Access to qualified personnel (70%)
  • Industry practice (52%)
  • Improved levels of service (50%)
  • Business process redesign (48%)
  • Changing the rules of the game (37%)
  • Increased speed to market (35%)
  • System redundancy (33%)
  • Access to new markets (25%)

The goal of the research is to objectively benchmark key performance metrics and the current perceptions of financial, operational and political risk associated with the five leading Offshore operational models.