Prepare for shift in regional global markets

Offshoring is still with us for the time being, but it’s end is near. Then what?

According to The Hackett Group’s 2012 Key Issues research, companies are currently adapting their business models and priorities in response to economic changes in regional global markets.

To be most effective, they need to fully understand the benefit that comes from adopting global standards and organizational models that allow optimal execution by leveraging both skill and scale more broadly.

But the increased volatility in demand across global regions has also made it more critical than ever for companies to truly understand how each region should operate while still gaining the advantages that comes from a global process operating platform.

Hackett’s research highlights two driving factors behind the offshoring trend.

By far the most important force has been the consolidation of the delivery of business services into global business services organization, (GBS) as a next-step beyond shared services.

Having already moved more than 50 percent of their transactional work into single-function shared services, companies are now expanding the services into non transactional knowledge centric processes, and creating multi functional GBS organizations.

The second driver is the broad-based globalization of all aspects of businesses’ operating model.
As companies’ product/service lines, go-to-market strategies and supply chains are becoming more global, the portfolio of business services needed to support these global operations have become more global as well, so the center of business services delivery no longer naturally lies in the traditional domestic market.