By keeping costs within reach until such time the markets improve, offshoring helped firms stay afloat the economic downturn. The world economy shows sign of the recovery, the Business Process Outsourcing industry should fear not on losing the clients, as a clients see thyem now more than ever as a partner. With the firms feeling less economic pressure, it is inevitable that they will get back to the drawing board and identify the business strategies that helped them ride through the crisis. The companies are likely to retain the strategies that worked for them, one of which is the outsourcing. The market conditions are putting much pressure on Chief Information Officers to see to it that IT projects deliver value and one of the areas that continues to receives significant attention is offshoring.
In Asia Pacific, with the improving world economy corporate IT spending it is increasing in the current quarter. The increase in Information Technology investment is due to the sign of the economic revival, they think that there is a generally positive view that the Asian economies are coming back. The company executive are looking for the fast growth in the previously untapped locations instead of the launching projects simultaneously. The downturn led executives believe that moving into a new territories will create business opportunities companies that should address in the order to remain competitive. The offshoring as a business model is often used to reduce costs but organizations than can also use outsourcing to exploit opportunities for the overseas expansion.
The number of the US firms with an outsourcing strategy more than a doubled. The ORN claims very few US companies plan to relocate activities back to its native soil. The reason is because offshore facilities tend to be more efficient because they are newer and lack of the years inefficiencies often built up in onshore facilities.
REFERENCE:
http://www.blog.infinit-o.com/at-kearney-offshore-facilities-more-efficient-than-facilities-onshore/
