Offshore the DIY way

Outsourcing advisor TPI has seen a trend 4 out of 5 UK companies are bound to follow over the next two to three years: increasing offshore outsourcing with a Do-It-Yourself twist.

This DIY approach seems to be edging out the use of third party outsourcing companies to handle transactional processes. Large companies are now leaning towards offshoring to low-cost locations by setting up their own ‘captive’ operations. This move is an offshoot of the market’s maturing since IT buyers are becoming more aware and knowledgeable in handling offshore operations themselves.

Duncan Aitchison, TPI international managing director points out, "Buyers are increasingly employing hybrid models that mix some outsourcing with some 'do-it-yourself' offshoring, and where external providers are engaged, it is for more complex reasons than simple cost reduction." He goes to add, "The build-operate-transfer model is also coming into vogue, particularly in IT outsourcing, with companies using third parties to set up a development team, manage it and finally transfer it - essentially to create a new offshore IT department."

However, not all companies will be contributing to an outward flow of jobs since half of the companies surveyed indicated plans of bringing back onshore selected elements of their services over the next five years.

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