Monday, July 12, 2004

Offshoring? Not So Much.

destinationCRM.com is reporting offshore outsourcing is not as widespread as once believed. This is according to a recent poll of 275 CFOs and financial executives by CFO magazine. But 64 percent of those surveyed believe that within 2 years they will outsource offshore.

"Even those companies that are offshoring may simply be dipping a collective toe in the pool, having dispatched, on average, just 6 percent of their workforce overseas."

"And the benefits claimed by companies in the survey are underwhelming. Ten percent of the companies that have already outsourced abroad 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."

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