Executives Considering Calling Offshore Operations Back

August 11, 2004 (PLANSPONSOR.com) - Nine out of 10 US executives currently offshoring worker are considering bringing those positions back home.

The executives are considering bringing the positions closer to home due to problems associated with travel costs, infrastructure, knowledge transfer,turnover, security, quality and cultural issues, and declining morale with employees at home. Nearly half (45%) of the CEOs, CFOs and CTOs polled want a US-based alternative to offshoring, according to the report Outsourcing IT: Over Here vs. Over There – The Promise and Perils by Aelera Corp.

The report also shows while executives expected 30 to 40% savings from low offshore laborrates, actual savings ranged from -20 to 20%. Additionally, a pproximately one in 10 projects were reported to cost more offshore than domestically.

Nearly three-quarters of respondents were from companies larger than $100 million in annual revenue and more than 25% of respondents were from companies larger than $1 billion in annual revenue. A summary of the report is available at http://www.aelera.com .