'Offshoring' Drive for Savings Accelerates

Marshall, Jeffrey
September 2003
Financial Executive;Sep2003, Vol. 19 Issue 6, p52
Academic Journal
This article presents an examination of the practice of offshore outsourcing. The author suggests that the term multishoring will soon be applied to the business practice of outsourcing multiple activities to multiple foreign destinations. He notes that this practices is already being used by some of the leading multinational companies in the world. The author notes that the primary objective behind this process is one that is cost motivated. Companies can reduce costs by outsourcing activities to areas where labor is cheaper. The author provides information that attest to how much companies can save through this practice and also discusses some of the logistical hurdles that need to be overcome to make the most out of an outsourcing project. INSET: The Phillippines Comes On Strong.


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