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Anti-Offshoring Pressures and Offshoring of Information Technology and Business Processes

ID: Mar2012_CoBA_EG
March 2012
29 pages

In reaction to continued economic distress, anti-offshoring sentiment has increased in public opinion and political rhetoric. However, what is the response of organizations to anti-offshoring pressures?CoBA Logo

University of Missouri-St. Louis, College of Business Administration conducted a survey with the support of Everest Group to understand how different organizations are responding (e.g., moving work, changing plans, adjusting public relations) and satisfaction with offshoring initiatives.

This report summarizes the findings from the survey. It is authored by Shaji Khan (Ph.D. candidate) and Dr. Mary Lacity, Professor of Information Systems.

Key findings include:

  • Overall extent of offshoring: On average, there seems to be no indication of an overwhelming drift away from offshoring as a result of anti-offshoring pressures
  • Service provider/location selection: On average, there is no apparent preference for only those offshore majors that have sizeable presence in buyers' home country
  • Contractual and relational governance: More respondents agreed that anti-offshoring pressures have had little impact on how contracts are structured and relationships are managed
  • Regulatory environment uncertainty: Overall, respondents expressed greatest uncertainty about changes in laws or policies relating to hiring foreign workers and taxes
  • Organizational Satisfaction with Offshoring: On average, respondents indicated fairly high success with offshoring. Similar levels of high satisfaction with both IT and BP offshoring

Download the full report for the complete analysis and more detailed findings.