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Communications of the ACM

ACM Opinion

Outsourcing Makes A Comeback


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Remember all the talk about outsourcing? After fizzling out over the past couple years as companies simply slashed jobs rather than move them, outsourcing is back in vogue.

A new PricewaterhouseCoopers study shows outsourcing has roared back to life in the past six months and is accelerating, driven by the same cost-cutting focus that triggered the trend in the first place. Some of this is offshoring to captive business units where labor costs are lower, which helps maintain continuity of service. Some of it is to third-party companies. And some of it is moving to countries like India, and from India to other places like China, the Philippines and Costa Rica. Even Romania has jumped into the game for outsourcing accounting services.

"Cost is still the major factor," says Charles Aird, managing director for shared services practices at PWC. "But people are also looking for greater efficiency, better quality and access to talent."

From Forbes.com
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