Reverse Outsourcing Trend: Jobs Back in US

Recent trends show that business process management services are getting back to US. Indian and US outsourcing companies are showing a reverse trend in business process management (BPM). Infosys recently scaled up their onshore BPO operations in Atlanta, hiring more US staff. The company chose Atlanta not only because of the unemployment factor prevailed in the city but also due to the availability of skilled resources.

obama reverse outsourcing. Source:

Anyway, there are some specific motives behind the reverse outsourcing trends shown by Indian and US outsourcing companies. Difficulty in getting visas for Indian workers and tax issues are some of the apparent reasons.

Reduced Cost

Cost reduction is one of the prime factors considered while choosing a vendor under any strategic business. Companies are now looking for getting their work done closer to where they are and also in the cheapest possible manner.

According to the Hackett Group, a Miami-based consulting company, though past decades showed affinity towards offshore BPM services, the trend will slow down from the beginning of 2013, and around 400,000 offshore positions will be lost by 2016.

HfS Research, a Boston- based research firm, based on their research study highlights that US is the most preferred location across globe to enlarge IT and business-services, where as India stands in the second place. This clearly reflects the fact that BPM jobs are shifting back to US and it makes sense for firms to look at having their onshore units set up in US.

Better Satisfaction

Phil Fersht, chief executive officer of HfS Research, says that ‘Respondents have been largely satisfied with the off-shoring of low-end jobs, such as call centers and routine IT maintenance’. Their research study shows that, 72 per cent of companies are satisfied with onshore outsourcing of human-resource services, rather than offshore BPM.

Outsource Onshore

Setting up BPM centers onshore will help companies to pick up more strategic business, by which they can move ahead of their competitors. Infosys is also looking for opportunities to capture business from companies that prefer on shore BPM operations, through which they can beat their competitors like Cognizant Technology Solutions Corp. (CTSH).

Other factors like market share, increased U.S. presence, and opportunity creation also added to the decision of Infosys to set up such a center at Atlanta.

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