Offshoring Spreads Its Wings

So far outsourcing has not been a big issue in the US presidential campaign because US voters and workers have accustomed themselves to the fact that companies look for skilled and low-wage workers all over the globe. The rate of companies reporting a reliance on offshore hires, more than 35 percent in all, has more than doubled since 2004, and the rate is even higher among the largest companies, reports a CFO survey. The reason for offshoring goes beyond saving costs, but also assisting companies in entering new markets while spreading risks, improving customer service, and encouraging flexibility and global networking. For example, firms based in India open offices in the US and Europe to gain access to new markets. Offshoring tasks continue to expand into new areas: Besides information-technology and financial tasks such as payroll processing and accounts payables/receivables, companies also outsource insurance claims, routine medical analysis as well as research and editing for legal or publishing operations. In expanding the tasks, explains Kate O’Sullivan for CFO.com, companies improve management practices and gain a better understanding of challenges specific to offshoring, - YaleGlobal