More Satisfaction: Outsourcing or Offshoring?

ffshoring provides more satisfaction than outsourcing even though the former is used lesser, says a recent study by Bain & Company. Only 37% of respondents to the survey use offshoring while the percentage of outsourcing practitioners is 70% (almost double). At the same time, the satisfaction level from outsourcing is 3.68 points and the satisfaction level from offshoring stands at 3.70 points. (See Chart).

Region-wise calculation shows that while Europeans (42%) don't offshore as much as North Americans (51%), they are relatively more satisfied. The satisfaction level in the U.S. stands at 3.75 points while it is 3.88 points in the case of Europe.

This year the survey includes 1,221 responses from more than 70 countries. The study focuses on 25 most popular management trends and tools, including Six Sigma, outsourcing, offshoring, benchmarking, collaborative innovation, core competencies, customer relationship management, growth strategy tools, strategic planning and knowledge management.

In terms of usage, of these 25 management tools, offshoring ranks 22nd. And in terms of satisfaction, it stands at 16th position — this is nine ranks down from 2004.