Demonstrating to corporate executives the importance of building offshore plans with a long-term strategy in mind, Bill Frech, Vice President and Business Process Outsourcing Service Line Leader, discussed the present and future of business process outsourcing and offshoring with executives attending “The 2004 GCI Offshoring Summit”.
In a panel discussion on offshoring, Mr. Frech said that outsourcing could reduce operational costs by 20-30%, sometimes more. He continued to say that many companies already view offshore software development as a key aspect to their business strategy because the economics are so compelling. However, factors such as cultural issues and hidden costs are making companies consider a long-term view when contemplating moving their operations offshore.
“With offshoring, it is important to choose an outsourcer that can provide flexibility and delivery operations as labor markets change and business needs evolve,” said Frech. “Companies are able to invest cost savings from outsourcing into strategic growth areas and also react to changing business dynamics faster and smarter by being able to scale up or down as business needs evolve.”
Frech encouraged corporate executives to consider factors beyond cost when developing an outsourcing strategy. For example, it is important to understand infrastructure issues, business continuity and cultural issues when evaluating a strategy. Frech discussed CGE&Y’s RightShore™ outsourcing model, a customized blend of onshore, nearshore and/or offshore capabilities, tailored and coordinated to meet a company’s specific business goals. RightShore leverages capacity, capabilities, cost reduction, and competencies across geographies to achieve optimal customer satisfaction. To effectively validate CGE&Y methodology/philosophy, Frech highlighted case studies that proved the value of how offshore outsourcing strategies have worked for past clients.