In the earlier version of the flat world, the contemporary business tool, offshore outsourcing, which was discovered a few years back, grabbed the world's attention. Some companies adopted the tool without any hesitation while others doubted and even criticized. But now, the verdict was clear: Offshore outsourcing enabled globalization and its economics brought value to the business. What now?
If Thomas Friedman was asked to write the new version of his international bestseller The World is Flat, he would have titled it ‘The World is Becoming Flatter’. In the earlier version of the flat world, the “contemporary” business tool, offshore outsourcing, which was discovered a few years back, grabbed the world’s attention. Some companies adopted the tool without any hesitation while others doubted and even criticized. But now, the verdict was clear: Offshore outsourcing enabled globalization and its economics brought value to the business. What now?
The direction, where global companies are heading today, leads them to the flatter world. And, the interesting thing in this new world is to watch the companies’ reaction to globalization and their changing competitive tactics. They are actually discovering new ways of doing business.
As the sourcing world gets matured, most companies plan to focus internally on making their business processes more efficient, according to a recent study conducted by Economist Intelligence Unit on behalf of EquaTerra, a global sourcing advisory firm. In response to globalization, 54 percent respondents to the study seem to be focusing internally on making their business processes more efficient while 46 percent to be concentrating externally on investing and expanding in foreign markets. “Far fewer companies cite moving operations to lower cost markets (29 percent), or outsourcing/offshoring (11 percent) as their primary response to globalization,” according to the study titled The Benefits and Challenges of Globalization.
The study, which is based on the responses from 217 C-level and other senior executives from 19 industry groups worldwide about the benefits and challenges of globalization, also reveals that 61 percent of Western European respondents cited that business-process efficiency is the most important area to address. And, the need to enter foreign markets and expand their presence there was a slightly higher priority for 67 percent Asian and 47 percent North American respondents.
Source: Equaterra/Economist Intelligence Unit
Courtesy - Global Services Media
0 comments:
Post a Comment