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Purchasing professionals don't expect on-shoring increase
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.
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