Tuesday, October 28, 2008

Backshoring: Moving Jobs Back to America

Some big corporate names—Dell, Apple and American Express, to name a few—have made news by bringing some of their offshore operations back to the United States. Is this a trend that will continue?

In Booz Allen Hamilton’s online magazine, strategy+business Online, partner Vinay Couto, principal Ashok Divakaran and senior associate Mahadeva Mani write that companies can expect a natural rebalancing as they determine what work can best be performed where as the concept of offshoring matures and settles.

The U.S. will, no doubt, gain and lose some ground in the process. Indeed, companies have begun to rethink their offshoring decisions in a way that ultimately will render "offshore" and "onshore" no longer meaningful or relevant. Instead, companies are making choices about the best place to do a given piece of work—be it offshore, onshore or nearshore. As this transformation occurs, work is being spread throughout the world and companies are globalizing to keep up. But we're only at the beginning of that process, and we won't witness the full effects for quite some time. Traditional offshoring, as we know it, is by no means dead.

Larson note: I do like what I’m hearing. Some things are good to outsource and take offshore and some other things should never be put over seas. This is how the world works sometimes to the USA’s advantage and other times to our disadvantage. My company is focused on keeping jobs that sell to the USA in the USA, so I see this as nothing but good.

The major key in these decisions (of me) is to partner in a country where the playing field (both ways) is level. Currency, Rebates to companies for paid tariffs unabated pollution, human rites, minimum and child labor laws. These must all be equal between the two countries where outsourcing should take place. Look up my earlier blogs on my solution on these things.

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better

No comments: