Offshoring may not be working, at least that’s what some end users are saying. A recent CBS news interview with Boston Consulting Group managing director Hal Sirkin suggests that the previously claimed benefits of offshoring may not actually be accurate. The interview, which every MSP and customer should watch, is a great testimonial by an executive that recognizes the shortcomings of offshoring, or more precisely, that offshoring is not ideal for every situation.
For a number of years now the offshoring debate has been leading many to express similar beliefs about the limitations of offshoring. But the interview underscores an even larger trend that is very promising for the professional MSP community. Nearshoring or onshoring (whichever term you prefer) is the practice of outsourcing locally. This practice is picking up considerable momentum, particularly amongst end-users who have had experience in outsourcing beyond the shores of their country. Companies like Boston Consulting Group have learned that the benefits of offshoring are not only not benefits, but they could actually be negatives.
So, what are the specific areas of concern with offshoring?
- Cultural differences
- Language differences
- Time zone differences
- Data privacy and other IT related laws that may make doing business in that country more challenging