offshoring, survey
Offshoring not that effective – survey
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According to a recent survey in the CFO magazine, offshore outsourcing is neither as widespread nor as cost-effective as the media would lead the public to believe.
The survey, which polled 275 CFOs and financial executives, found that offshore outsourcing is limited, but those companies that have opted for it are, for the most part, committed to the practice long term.Only 18 percent of respondents said they were currently outsourcing, but 64 percent of those companies said they planned to expand their outsourcing efforts in the next two years. An additional 10 percent of the companies said they plan to consider offshore outsourcing. However, even those companies that are offshoring have on an average, just 6 percent of their workforce overseas.
The survey also points out that the benefits of outsourcing, as claimed by companies, is not that high. Ten percent of the companies that have already outsourced to other countries said they saw no cost savings whatsoever, and 38 percent saw savings of less than 15 percent. Only 42 percent of companies said that offshoring had resulted in savings of more than 20 percent.
The most common type of work being sent overseas was programming-related IT work and manufacturing, though 31 percent of companies with offshore experience stated that their projects included customer relations or contact centers.
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