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7 Lessons of the Offshoring Pioneers

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7 Lessons of the Offshoring Pioneers

The need to remain competitive has kept offshoring an essential part of nearly every company's sourcing strategy. The questions that remain are what and how to offshore. Offshore pioneers who have navigated the changing IT offshoring terrain have some answers based on a decade's worth of lessons. In part 1 of a two-part series, we look at seven of those lessons.

CIO — It's been almost 20 years since the first CIOs began sending work offshore--at that time to a nascent IT services industry in India.

Companies in the financial services, manufacturing, high-tech, and telecom industries led the way, but none made a more public splash that GE. So when the poster child for offshoring pioneers announced it would bring some of those IT tasks back home, one might have wondered if it was a sign that IT offshoring was on its way out.

Hardly.

Less than five percent of companies say they are bringing work back onshore, according a recent survey of 400 enterprises by HfS Research and KPMG. In many cases, companies are sending more--and more complex--IT tasks offshore, says Jimit Arora, vice president of IT services research for Everest Group.

 Bringing IT Back Home: 10 Prime Locations for Onshore Outsourcing

"I can't think of a single company that has less offshore work today than it did 10 years ago," says Esteban Herrera, partner with outsourcing consultancy Information Services Group (ISG), "with the possible exception of GM, which has undertaken a large and publicly visible program to bring IT jobs back to the U.S."

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