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Purchasing professionals don't expect on-shoring increase

19 May 2013

Purchasing professionals do not expect to see an increase in on-shoring in the near future. 

At a debate held by procurement firm 4C Associates, nearly 75 per cent of attendees said they think it is unlikely that companies will opt to locate services at home rather than offshore them in the coming few years.

Ed Ainsworth, 4C managing director, claimed that growing costs abroad means many companies are reconsidering the value of offshoring, news website Supply Management reports.

He pointed to rising labour and transportation costs in emerging nations such as China and India and contrasted this with falling prices in Europe and government incentives to 'bring services home'.

However, Rob Lees, a managing director at the firm, disagreed saying "there is a difference between offshoring and abdication".

He said that offshore operations are an extension of the company involved and firms cannot "take the cost arbitrage and run".

Mr Lees concluded that mature, clear, open-eyed offshoring is still the best way to build capability while reducing the costs of an enterprise.

Odgers Interim are UK leaders in Interim Management solutions for the Commercial Sector. We have offices in London, Birmingham, Leeds, Manchester, Glasgow, Aberdeen and Cardiff as well as over 50 offices globally. We are the only Interim Management providers who are part of a top tier international executive search firm. We work closely with our executive search colleagues to find candidates who can offer short term solutions with long term benefits. www.odgersinterim.com


Categories: Commercial

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