| | India and China will be
the main winners from an
increase in off shoring
but Eastern Europe is
also set to benefit,
according to CEO
Briefing, a report
published by the
Economist Intelligence
Unit. The report, which
includes a new ranking
of 60 global off shoring
environments and a
survey of 500 senior
executives, concludes
that companies will
redistribute more
service functions to
Asia and Eastern Europe
over the next three
years. Only a few
developed markets emerge
as attractive off | |
|
| | shoring locations, with
Canada leading the way
among OECD countries.
The impact of off
shoring continues to
grow, with 57% of
executives in the survey
citing outsourcing and
off shoring as critical
forces reshaping the
global marketplace (up
from 51% last year). The
survey, which captured
the views of CEO and
other senior executives
on a range of management
issues, shows companies
are now off shoring a
wide range of service
functions including IT,
payroll, finance and
accounting, logistics
and manufacturing, as | |
|
| | well as customer
services.
The Economist
Intelligence Unit's
ranking model measures
the attractiveness of 60
countries as
destinations for off
shoring, scoring each
country on nine criteria
commonly used by
companies when deciding
where to offshore.
Countries were scored on
labour costs, labour
skills, labour
regulation, proximity to
major sources of
investment, political
and security risk, macro
economic stability,
regulatory environment,
tax regime, and | |
|
| | infrastructure. The key
findings were that Asia
will increase its off
shoring dominance,
however, Eastern Europe
will also benefit, while
Canada remains the most
attractive developed
country.
"India and China are
already the leading
destinations for off
shoring, and have the
potential to win an even
bigger share of off
shoring projects if they
address remaining
weaknesses in their
business environments,"
says Daniel Franklin,
Editorial Director of
the Economist
Intelligence Unit.
| |
|
| |
"With outsourcing and
off shoring becoming
critical forces for
business, it is
important that
businesses look
internally both at their
motivation for off
shoring and their
ability to manage such a
function. Off shoring
cannot fix broken
processes but in fact
may only serve to
exacerbate the problems,
irrespective of the
location chosen," says
Andrew Briggs, Dimension
Data's head of contact
centres business.
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