Friday, June 17, 2005

Business continues to see strategic benefits of outsourcing

From: personnel today

The majority of companies still believe there are significant strategic benefits and competitive advantage to outsourcing. Almost two-thirds of companies believe that outsourcing can bring real competitive and strategic advantage, according to a research.

India and Russia are singled out for their expertise in services provision. India is hi-tech and well educated resources, so it's a good place to base centres of excellence. Russia same way is using a fantastic research institute [with] a lot of well trained scientists and engineers that has surprising technology.

China is seen as a manufacturing hotbed. However, direct investment in the country remains difficult. However, the research also highlighted environmental inhibitors to moving into these markets. These inhibitors included corruption and political and economic volatility, which were mentioned in relation to Russia and Brazil. Human rights were of greater concern in India and China.

A survey 2,100 UK companies and organizations, conducted by pollsters NOP, shows that business attitudes to outsourcing are becoming more positive. More than half (51%) of the companies surveyed said that outsourcing has become an established way of working – a figure 14% higher than it was in 2003.The survey reveals that more and more organizations are realizing the benefits that outsourcing can bring.

But it is important that businesses don't solely focus on the benefits - to achieve outsourcing success, companies must adhere to best practice policies and practices.

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