One third of CEOs find less value in outsourcing
By siliconindia   |   Saturday, 23 May 2009, 00:26 IST   |    1 Comments
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One third of CEOs find less value in outsourcing
New York: One-third of the CEO’s worldwide believe that outsourcing now offers less economic values than what it used to be five years ago, states 'CEO Report 2010’ by leading bourse NYSE Euronext. "One-third of CEOs believe outsourcing offers less economic value than five years ago," said the survey, which was carried out by Independent market research and consulting firm Opinion Research through the internet, phone and mail from March 5 to April 13, 2009. The report showed that the chiefs at American firms find outsourcing ‘less attractive’ than their counterparts based in non-U.S. Regarding the economic value of outsourcing, 45 percent of the respondents feel that it remains the same as compared to earlier, whereas only 22 percent believe that such a move is economically more benefit. Interestingly, the percentage of outsourcing has not changed much in the last two years, the report stated. The survey spanning from March 5 to April 13, 2009 had participation from 23 industries and 24 countries that were represented by a total of 284 CEOs. Of the total participants; 195 responses were from the U.S., 48 from Europe and the UK, 12 from Latin America, nine from the Asia-Pacific region and 18 from Canada and Bermuda among others. Indian outsourcing firms, whose major chunk of revenue comes from U.S., will be hurt more with the Obama’s administration restricting the hiring of H-1B visa-holders by companies, which were bailed out by the Federal government and recently announcing a plan to end tax incentives for American entities generating jobs overseas. On plans to maximize opportunity in emerging markets, 21 percent of the respondents said they are seeking and/or expanding local partnerships, including outsourcing arrangements. About 46 percent of the chiefs noted that they are looking at establishing and or expanding local marketing, sales activity.

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