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US firms happy to outsource

Dharam Shourie in New York | February 06, 2004 12:35 IST

Despite the protectionist backlash against moving infotech, business process and contact centre services to India, China and other overseas locations, American companies are satisfied with their offshore outsourcing initiatives and plan to expand such operations, a new study has indicated.

Companies with significant outsourcing experience have moved or are moving toward a strategy of multiple locations, multiple vendors and a judicious blend of both 'insourced' and 'outsourced' models to minimise risks and maximise flexibility, it found.

Conducted jointly by the Weissman Center for International Business at Baruch College and The Paaras Group, the just released study is based on comprehensive surveys and in-depth interviews with 38 global companies, mostly in North America.

It found that offshore outsourcing continued unabated last year especially as companies gained confidence in their ability to manage offshore operations.

It also discovered that outsourcing delivered significant benefits to pioneers as well as newcomers last year and the companies were able to improve their quality while cutting costs.

"Despite protectionist backlash in the US and Europe, the offshoring wave has turned into a Tsunami -- an inevitable outcome of globalization and economic integration," said Suresh Gupta, Managing Partner, The Paaras Group.


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