Onshore, Nearshore,
Offshore: Still Unsure?
India Consistently
Leads Top 10 (Ten) Locations for FDI in Shared Service Centres – 2003 to 2011.
The options for
global location decision makers are extending. Optimal decisions require a
broader & more considered evaluation reflective of changing times. With the
whitepaper ‘Onshore, Nearshore, Offshore: Still Unsure?’, Jones Lang LaSalle
revisits a theme originally explored in 2008 & outlines the complexity of
global location decision making today.
It maintains that if
optimal location decisions are to be made in today’s challenging operating
environment, then a broader and more considered evaluation of options is
required.
Key Findings....!:
Corporate strategy
& location decision-making have been
impacted by the rapidly changing global landscape, but there is also change
coming from within international corporations. This evolution has occurred in
both the decision - making framework and the geographic focus of “shoring”
decisions and locations.
A longer term focus
on productivity, operational efficiency & future scalability is now driving
decision making, rather than straight cost-saves in the short term
Higher value
functions such as research & development, legal services and HR (Human
Resource )are increasingly being considered as part of the process of footprint
optimisation
Global Location
Decision Makers..!
“The options for
global location decision makers are extending,” says Tom Carroll, Director –
Corporate Research (EMEA) Jones Lang LaSalle.
“Optimal decisions
require a broader and more considered evaluation reflective of changing times.
India continues to be a leading player in this environment, supported by its
strong fundamentals. International corporations are increasingly focused on
productivity, operational efficiency & future scalability, rather than
straight cost-saves in the short term.
India will need to
ensure it reflects these concerns if it is to retain its leading position.”
Mr. Anuj Puri,
Chairman and Country Head, Jones Lang LaSalle India, concurs that India –
while still hitting the high notes on the offshoring market – will need to work
hard to maintain its edge.
“When it comes to
offshoring business operations to India, the traditional benefit of
availability of a large talent pool, lower costs & quick turnaround time still apply,” he says.
Largest English
Speaking Population in world..!
“India has the
largest English speaking population in the world, ensuring optimal
communication customer - vendor communications. Also, apart from the cost
arbitrage of engaging Indian professionals, outsourcing to India enables
foreign companies to overcome office space costs in their own countries.
However, India is
beginning to face stiff competition on the outsourcing front from other markets
like China and Indonesia. We have been advising our clients on effective
differentiation strategies that are designed to help them maintain the edge.”
Will we reach
saturation point with demand for offshoring?
Are we seeing
diminishing returns?
The answer in some
locations is clearly yes.
However, ‘shoring’
increasingly needs to be seen as part of the broader process of location
optimization for an ever-growing range of business functions. This process will
remain under review as long as business strategy remains dynamic, and companies
seek to adapt to changing geographies of growth.
Click here to download the report Onshore, Nearshore, Offshore: Still Unsure?
Src: JLL India
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