“Offshoring: Competitive Edge” |
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By: Elizabeth G. Posted: 2006-07-29 22:17:48 |
| Trends in offshoring business processes are getting stronger and more stable. From simple assembly tasks, multinational companies are now set to move their research and development tasks to countries that have met their stringent standards. A recent study presented to the National Academies in the United States say corporations will send more and more of their research offshore.These businesses are targeting progressive economies that hold substantial human resources adept in information technology, engineering and the sciences. Lure of minimal set-ups and overhead on the other hand, is just an added bonus. Main reason for exporting such activities is still the quality of work these offshore professionals deliver. Over 38 percent of the 200 multinational firms surveyed are going to decentralize their development process in the next three years. They are now globally shopping for talents capable of meeting their dynamic needs. In fact, executives believe offshoring gives them the business edge they demand in their respective industries. It is no wonder outsourced activities are climbing the corporate ladder. But very few people see this as a threat to their corporate wares. Instead, it is perceived as just and natural progression of a normal booming business. Increasing awareness of info-tech gadgets also helps management monitor developments on their investments, unburdening them of worries caused by running a portion of their business overseas.Now, businesses operating within different industries without their own websites are considered, not only site-less but also sightless. Robert Heller, a leading management guru, went even further when he said – “the new breed of organizations must be built on change, not stability: round networks, not hierarchy: on interdependencies, not self-sufficiency: on technological advantage, not fixed assets.”It seems like offshoring is being deemed as the solution for giving existing firms their competitive edge. Others who do not do so, may find themselves behind league leaders in terms of market share and profits. More importantly, offshoring provides higher returns on investment companies have seen in years. Making it not only the “hottest business trend” around, but an “industry must” if companies and corporations are to survive and excel in their present industries. |
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