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“It isn’t a case of offshore, near-shore or local. Only once you have determined that outsourcing is right for your business should you look at components like location.”

JONATHAN COOPER-BAGNALL, SOURCING CONSULTING,  PA CONSULTING GROUP

Offshore outsourcing: Location, location, location

Rod Newing
Financial Times - Business of Consulting report
15 November 2010

This article in the Financial Times ‘Business of Consulting’ report looks at how consultants believe they have a key role to play in helping governments achieve spending cuts. A critical element of this will be to help them overcome concerns about offshore outsourcing.

PA gives its view on how the public sector can achieve the kind of service improvements, efficiencies and cost reductions that offshore outsourcing already delivers so well to the commercial sector.

According to PA, the real question is not where to outsource, but whether to outsource at all: “It isn’t a case of offshore, near-shore or local. Only once you have determined that outsourcing is right for your business should you look at components like location.”

PA goes on to say that offshore outsourcing is not a big issue, but organisations rarely understand all the factors that must be considered. These include labour costs, inflation, time zones, data security, political stability, labour availability, language skills, local infrastructure and legislation.

You can read the article in full here and also read PA’s comments in the 'Business of Consulting' report on the value of consulting here and on financial services consulting here.  The report also features an article dedicated to PA’s work in the Middle East, you can read this here.


To visit PA's pages on outsourcing, please click here.

   
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