TECH BUYER Mar 2017 - IDC Perspective - Doc # US42371317

Managing a Portfolio of Global Offshore Outsourcing Contracts

By: Dr. Ron BabinAdjunct Research Advisor

Abstract

This IDC Perspective provides insight to executives — CEOs, CFOs, CIOs, and CPOs — who are accountable or responsible for global outsourcing. The challenges of offshore outsourcing are growing, while the benefits may not be as attractive as in the past. Executives must take direct action to understand and mitigate the changing factors that are altering offshoring, particularly rising nationalism and the increasing benefits of robotic process automation (RPA). An outsourcing portfolio should be rebalanced regularly in response to changing risks and returns of the offshore model of the past two decades.

According to Ron Babin, adjunct researcher with IDC's IT Executive Program, "Offshore outsourcing is under significant pressure, as most organizations consider how and when to bring outsourced work back onshore. The combination of rising nationalism and the promise of low-cost automation through RPA creates a strong encouragement for companies to reshore business process work. All outsource buyers must consider the possible cost and reputation benefits of bringing work back home."


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