Companies in USA continue to offshore some of the functions despite global slowdown. The budget crunch is expected to speed up such initiatives.
The study conducted by Center for International Business Education and Research's Offshoring Research Network (ORN) at The Fuqua School of Business at Duke University and PricewaterhouseCoopers (PWC) on offshoring trends showed that cutting cost is the priority with an urgency to improve efficiencies among US companies. The research was conducted to capture business managers sentiments under decline in financial markets and US presidential elections.
Arie Lewin, Professor of Strategy and International Business, Executive Director, CIBER has identified that as companies grow their efficiency level dips. Global slump has now forced companies to pay attention to efficiency since they need to deliver more with less.
Companies are planning to enhance efficiencies through business process redesign and by improving coordination and integration of offshoring processes.
Hari Rajagopalachari, Executive Director, PWC averred that since pressure is mounting on executives to improve efficiencies within no time they want to improve their existing organizational capabilities for managing their offshoring strategies for quick results.
According to the survey a more important driver of offshoring, is the need of increasing speed to market for 41 percent of the respondents.