Offshoring: Moving elements of your companies operations overseas while keeping them within the company.
I found the table above interesting because it proves the idea that you shouldn't base your decisions on one factor such as cheap labor (a.k.a. financial attractiveness in the table) alone. Tunisia and Sri Lanka are among the top 5 in financial attractiveness however because of their relatively poor people skills and availability, they are bumped down to 23rd and 21st place overall in the total score.
QUESTION!
If you were to weigh certain categories for offshore attractiveness more than others, which one would it be and why?
Way to pick out the Tunisia and Sri Lanka anomalies. You're spot on I think.
ReplyDeleteTo answer your question, I think it would depend on the process you're offshoring. For example, if I don't really care about people skills but just want cheap labor for menial work, I might take Tunisia. But, if I need friendly people to answer phones for customer service, I'd consider weighing people skills more heavily and potentially go for the Philippines.
I agree with Mr. Anthony Barnes, to answer your question it depends very much on the purpose/mission objective of each of the businesses. For example, a manafacturing company would take in variables into offshoring their resources are qualities such as which comapnies have cheaper workforce and the cost of raw materials in the country. Each comapny should also make sure that before they decide on outshoring tehy need to decide if the country has a certain type of quality and the exact product needed for the companies standards. I have an example, Claymount which is a great example of how this company uses specifically chosen countries in deciding to offshore.
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