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US and European procurement jobs threatened by offshoring14 Dec 2010Source: Procurement Leaders Increased offshoring means that the "dramatic job" losses seen by US and European companies in 2008 and 2009 will continue through to 2014 and procurement professionals could be increasingly affected, experts have warned. According to the Hackett Group, there is "no end in sight" for the jobless recovery in business functions such as corporate finance and IT, in large part due to the accelerated movement of work to India and other offshore destinations. It warns that many companies are now creating their own Global Business Services (GBS) organisations in India and other low-cost labor markets. It notes that GBS organisations embrace both outsourcing and their own internal offshore operations, which remain owned and operated by the companies, to enable a broad array of functions to be moved to low-cost labor markets and managed in an integrated fashion. "Over the past few years, many companies have become more mature in their use of GBS organisations, expanding them beyond a basic shared services approach to manage operations in multiple functional areas such as IT, finance, procurement, and human resources. By offering economies of scale, scope, and skill, this approach enables companies to drive cost reductions and lower headcounts. Companies are also looking to enable global enterprise operating standards that will streamline their businesses and drive better overall results," the Hackett Group warned. Read more here |
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