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IT Offshoring strategies

Industry : IT Services Functional Area : Outsourcing
Activity:  1 comments  320 views  last activity : 07 06 2010 20:18:04 +0000
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Outsourcing work to companies that can do it more efficiently and less expensively makes sense, provided that it is actually less expensive at the bottom line, and not just for the department that wants to outsource.

Even that far back, in the '90s, the outsourcing trend was hot. Organizations from Fortune 500 companies to midsize firms and even state, federal and local governments went on a vendor-contracting spree to address the twin challenges of Y2k and the e-commerce "revolution."

Offshoring, which is a small, albeit significant, subset of outsourcing, became the focus of debate on the merits of outsourcing.

During that time, academic researchers and strategists began to focus on the details of managing large-scale outsourcing, including best practices and strategies. Nowhere was there a mention of "foreign," "overseas" or "offshore."

But with changing times the term outsourcing and offsoring were interrelated. Most people, even those in the industry, mistakenly began to believe that all outsourced work is offshored, fueling acrimonious debate over the merits of sending jobs overseas.

The question remains: Where has the real debate on outsourcing gone? Have the industry leaders accepted the merits of outsourcing and are now concerned only about the merits of offshoring?

 

 
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