Wednesday, September 29, 2004

Global Sourcing: Positive or Negative

Globalsourcing, offshoring, outsourcing call it what you want, one cannot seem to get away from these terms. Not only are these terms used interchangeably but, our news media, technical forums and world-renowned economists all have something to say about this business model. These three terms have been bandied about in Presidential campaigns, linked to labor abuses, the U.S. economic downturn and the end of Silicon Valley as we know it.

Does offshoring deliver on all of its expectations? Is globalsourcing for everyone? Is outsourcing the panacea for all business issues?

Various media sources indicate that approximately 15%-25% of fortune 500 businesses have plans to go global. VC's are establishing offices in Asia and India to secure additional portfolio companies. Driven by tax benefits, hopes of VC investment and a perception of huge savings, start-ups and existing businesses are looking to "going global" as guarantee of a healthy bottom line.

Numerous companies have underestimated the due diligence involved in establishing a global presence. Managing through the logistical challenges associated with offshoring is one of the key factors to being successful in this endeavor.

1 comment:

Anonymous said...

Results of outsourcing bearing fruit atleast for India