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Offshoring Reaches the C-Suite - Research Report
Description:
Companies are moving not only back-office functions like IT and administrative processes outside their national borders; they're also offshoring product development and other innovation job functions that affect corporate strategy and demand involvement of the C-suite. Offshoring Reaches the C-Suite distills findings and interpretations from the 2007/2008 Offshoring Research Network (ORN) survey.
Offshoring practices have evolved at a rapid pace, and 2008 was no different.
For many corporations, offshoring has become a major strategic concern of top management. There has been a dramatic increase in the number of companies that responded positively to the question: “Has your company adopted a corporate-wide strategy for guiding offshoring and outsourcing decisions at the business unit and function level?” In the 2007/2008 survey, 53 percent of responding companies claimed to have a corporate strategy in place, up from 22 percent in 2005. Companies that have implemented a corporate-wide strategy have often achieved significantly better performance in terms of savings, meeting target service levels, improving relations with providers, overcoming internal resistance, etc.
The globalization of innovation has clearly emerged as a new strategic imperative for many companies.
- Of all the offshoring/outsourcing projects initiated in 2007, most implementations were related to product and software development.
- Speed to market and the domestic shortage of science and engineering talent are two key strategic drivers for offshoring innovation projects.
- Respondents said they view the loss of managerial control and employee turnover as the most important risks associated with the globalization of innovation through offshoring.
Offshoring practices have evolved at a rapid pace, and 2008 was no different.
For many corporations, offshoring has become a major strategic concern of top management. There has been a dramatic increase in the number of companies that responded positively to the question: “Has your company adopted a corporate-wide strategy for guiding offshoring and outsourcing decisions at the business unit and function level?” In the 2007/2008 survey, 53 percent of responding companies claimed to have a corporate strategy in place, up from 22 percent in 2005. Companies that have implemented a corporate-wide strategy have often achieved significantly better performance in terms of savings, meeting target service levels, improving relations with providers, overcoming internal resistance, etc.
The globalization of innovation has clearly emerged as a new strategic imperative for many companies.
- Of all the offshoring/outsourcing projects initiated in 2007, most implementations were related to product and software development.
- Speed to market and the domestic shortage of science and engineering talent are two key strategic drivers for offshoring innovation projects.
- Respondents said they view the loss of managerial control and employee turnover as the most important risks associated with the globalization of innovation through offshoring.
Contents:
- Executive Summary
- Structure and Demographics
- Offshoring Finally Has the Attention of the C-Suite
- The Globalization of Innovation Marches Forward: Ignore It at Your Peril
- Service Providers Are Adapting Their Offerings to Meet New Demands
- Small and Medium Businesses Are Increasingly Outsourcing Processes
- The Changing Constellation of Service Delivery Models
- Building Global Transformational Capabilities
- Table 2: Key Best Practice Capabilities for Supporting Corporate Offshoring Strategy
- About This Report
- About the Authors
- Acknowledgments
- About the Offshoring Research Network (ORN)
- Structure and Demographics
- Offshoring Finally Has the Attention of the C-Suite
- The Globalization of Innovation Marches Forward: Ignore It at Your Peril
- Service Providers Are Adapting Their Offerings to Meet New Demands
- Small and Medium Businesses Are Increasingly Outsourcing Processes
- The Changing Constellation of Service Delivery Models
- Building Global Transformational Capabilities
- Table 2: Key Best Practice Capabilities for Supporting Corporate Offshoring Strategy
- About This Report
- About the Authors
- Acknowledgments
- About the Offshoring Research Network (ORN)
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