Why Companies Need Offshore Outsourcing Services By Shaun Parker At Isnare.com Ezine Articles

One reason companies continue sending tasks overseas is because they are satisfied with the results.

Despite the challenges of moving IT, business process and contact center services to India, China and other overseas locations, companies are satisfied with their offshore outsourcing initiatives, according to a new study by the Weissman Center for International Business at Baruch College and The Paaras Group.

The joint study was based on surveys and interviews with 38 global companies, mostly based in North America.

The survey found that momentum for offshoring is continuing unabated, especially as companies gain confidence and experience in their ability to manage offshore operations. The survey also found that offshoring delivered significant benefits to pioneers as well as newcomers in 2003, with companies able to improve quality while cutting costs.

"Despite protectionist backlash in the US and Europe, the offshoring wave has turned into a Tsunami - an inevitable outcome of globalization and economic integration," said Suresh Gupta, Managing Partner of The Paaras Group. "In fact, the leaders in offshoring are no longer focused solely on offshore opportunities. They have graduated to a broader model of 'global' or 'smart' sourcing, which combines multi-location, multi-vendor and both in-house as well as outsourced solutions for IT and business processing."

Key findings from the 2003 offshore outsourcing survey include:

• Satisfaction Levels are High The vast majority of companies (89%) moving IT, business processes and contact center work offshore reported that they are satisfied with their offshoring initiatives.

• It's Not Easy Knowledge transfer (76%) and internal commitment (76%) were identified as the major challenges in launching offshore initiatives, which companies said need to be addressed early on to ensure success. Many of the survey participants recommended hiring outside services providers to help build consensus and bring 'best practice' experience.

• Cost Isn't the Only Driver Companies cited cost savings (94%) as the main goal of offshoring in 2003, followed by accessing skilled resources (63%) and improving quality (51%).

• Program and Change Management are Keys to Success Most of the companies surveyed (85%) believe that the establishment of a Program Management Office (PMO) provides the foundation for offshoring success, with two-thirds (67%) stressing the importance of proactive communications programs.

• 'Best Practice' Companies Prefer Global Sourcing to Offshoring Companies with significant outsourcing experience have moved or are moving toward a strategy of multiple locations, multiple vendors and a judicious blend of both in-sourced and outsourced models to minimize risks and maximize flexibility

Published At: Isnare Free Articles Directory http://www.isnare.com
Permanent Link: http://www.isnare.com/?aid=35683&ca=Business

Important Notice DISCLAIMER: All information, content, and data in this article are sole opinions and/or findings of the individual user or organization that registered and submitted this article at Isnare.com without any fee. The article is strictly for educational or entertainment purposes only and should not be used in any way, implemented or applied without consultation from a professional. We at Isnare.com do not, in anyway, contribute or include our own findings, facts and opinions in any articles presented in this site. Publishing this article does not constitute Isnare.com's support or sponsorship for this article. Isnare.com is an article publishing service. Please read our Terms of Service for more information.