jump to navigation

Offshoring – Key element of business strategy in global economy June 12, 2008

Posted by Bipin Agarwal in Global Economy, IT Offshoring - Future Direction.
trackback

Ask the question “What is offshoring” answer will depend on who you ask.

somebody from China – Move manufacturing to China, India – Move your IT work to India, Germany – Move your engineering to Germany, Russia – Move your satellite Launch to Russia, USA – Move your innovation to Silicon Vally and investment banking to Newyork.

Offshoring has been used for thousands of years. East India company went to India and started trading spices and cotton, etc. and started growing tea in India, that is the situation where offshoring was used as part of business strategy.

How can global company use offshoring as a competitive advantage. Leverage the core competency of people in different part of the wold and also the natural resources that are available in different part of the world. However, that is the entry point. From there, learn the local culture, build operation and sell them your product and services customized for them. Future of offshoring will be defined by the companies that will use this as a entry point in a country and expand from there. Those who will use offshoring just for leveraging the cost differential, will continue to chase the cost advantage and be marginaly successful.

Currently some of the large technology company, Dell, HP, Financial services company such as HSBC, Citi, DB, consumer company, P&G, Sony are using offshoring the right way, others are just working on the cost differential. True offshoring strategy should be a long term competitive advantage.

If you have a question, about offshore strategy, feel free to ask.

http://www.fnstar.com

Bipin Agarwal
https://servicesglocalization.wordpress.com/about/

Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: