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Onshore, Nearshore, Offshore, Rightshore, Capgemini

Onshore, Nearshore, Offshore - Rightshore

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25 Oct 2005 | (Thinking Point)
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Cost pressures on all organizations have become overwhelming. For the past two years, organizations have stayed competitive by improving operational efficiencies. They focused on decreasing expenses, reducing internal services and staff while optimizing the supply chain. Overall, these business adjustments led to incremental savings between 4 and 5%. In the current market, modest incremental improvements are no longer sufficient.

In the current market, modest incremental improvements are no longer sufficient. Analysts project that in order to remain competitive, companies must make sustainable cuts to operating costs – in the range of 30 to 40 percent within the next 3 to 5 years. To achieve these objectives, companies must turn to innovative approaches that deliver dramatic cost reductions and initiate business transformation. As a result, a recent trend has been to explore offshore resources for both process and IT applications. Offshoring has the potential to provide dramatic cost reduction capabilities. However, the improper use of offshore can have equally dramatic consequences. At Capgemini we believe that offshoring IT and business processes is a subject a company must address, and develop a tailored strategy that evaluates these capabilities and risk.

We believe that offshore is only part of the answer, performing the right work in the right place at the right time for the best economic value is really a matter of getting it to the right place. We call this Rightshore™.

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