Tuesday, February 02, 2010

American Onshoring for Economic Recovery

Amidst the discussion of President Obama's speech, the anxiety of a recovering economy and the need for a new global sourcing agenda; American Onshoring is gaining firmer ground

President Obama recently emphasized that outsourcing to foreign countries was one of the reasons for unemployment in the U.S., he also added, "...it is time to finally slash the tax breaks for companies that ship our jobs overseas and give those tax breaks to companies that create jobs right here in U.S.A." This is undoubtedly in the interest of the people of America, but has initiated a lot of discussion amongst service providers in other leading destinations. Most outsourcing pundits are already weighing its repercussions. It could also be a major threat to the world’s leading IT and BPO services provider- India- half of whose offshored business comes from the United States.

As for the buyers, it is time (specially in the United States) to re-consider and re-evaluate the pros and cons of offshoring. This will also give most organizations an opportunity to consider other avenues and ways to reduce cost. American onshoring will not go unnoticed this time. After all, the recent survey conducted by research firm Valuenotes Database among 237 publishers, consultants and service providers, largely from the U.S. and UK, notes that though India remains a favoured publishing sourcing destination with 66 per cent of the respondents rooting for it; it is followed by the U.S. with 30 per cent.