The column executive briefing

Issue #VIII

The trend continues to be around the use of “off-shoring” to help reduce associated operating cost in U.S. based companies. It’s a simple equation of-

a business will always need to reduce operating costs
+ some jobs can be performed for lower cost by off-shoring
+ this fact is not lost on anyone in corporate America

Business leaders must continually find ways to move their organization forward while addressing the question of how do we as a company “achieve a maximum for a minimum?” With increasing pressure to accomplish more while spending less, many top executives are swayed by the “off-shoring” argument as a way to reduce budgets and cost.

Although off-shoring provides the ability to significantly reduce costs, there are other options (internal/external) that can be exercised first to increase efficiencies and reduce costs, rather than just moving the work off-shore.

Understand the “trade-offs” and what you’re getting in return. Company executives focused solely on “cost savings” will see “off-shoring”as the most effective way to lower cost. However, this view may not take in the total cost of ownership when factoring the risk and hidden cost involved. At a minimum, this may mean that other critical matters are being given less weight or consideration.

Despite assurances to the contrary, if anything sounds too good to be true then it probably isn’t. Remember, “caveat emptor,”… or — buyer beware.