Cost Still Major Driver in Offshore Engagements

A new study done by Duke University's Center for International Business Education and Research and Archstone Consulting says that the organizations in the Fortune 500 have realized better cost savings and are planning to expand their offshoring activities. According to results, 72 percent of “offshore implementations met or exceeded their expected savings, with 31 percent achieving their service level goals within the first five months.” More than 55 percent had cost savings expectations greater than 30 percent per year.

The survey, which examined results from 90 companies, suggests that offshore initiatives will grow by more than half over the next 18 to 36 months. The biggest drivers? Cost benefits (cited by nine out of 10 respondents) and improved service levels (cited by nearly six out of 10 respondents). IT is the function most often sent offshore (cited by nearly seven out of 10 respondents).

You can read the press release from the study here.