Survey results: are client organizations responding to anti‐offshoring pressures?

Abstract

Purpose Given the global economic recession, anti‐offshoring political campaign platforms and proposed anti‐offshoring legislation in many developed countries, organizations face pressure to keep jobs in their home country. The purpose of this study is to determine the extent to which organizations are responding to anti‐offshoring pressures. It aims to ask whether client organizations are changing their buying patterns for information technology outsourcing (ITO) and business process outsourcing (BPO) services because of anti‐offshoring pressures. Design/methodology/approach A survey was administered to respondents representing 84 client organizations that purchase ITO and BPO services. Nine countries are represented, but the data primarily capture US client responses. Findings Overall, it was found that client organizations are not changing their buying patterns because of anti‐offshoring pressures. Client respondents report strong satisfaction with offshore outsourcing of IT and business services. In particular, clients favorably reported on the costs savings and increased flexibility with offshore ITO and BPO. Consequently, the majority of respondents have not altered how they select service providers or service locations because of anti‐offshoring pressures. Practical implications The economic recession is prompting at least two pressures on client organizations: reduce costs and keep jobs at home. Based on the authors' findings, the former is more influential. Even though respondents indicated a moderate to high level of uncertainty about possible anti‐offshoring legislation being passed, client organizations continue to source IT and BP services without much consideration to anti‐offshoring pressures. Originality/value Academic researchers have conducted very few studies that examine the effects of public pressure on sourcing strategies of client organizations. This research contributes to the body of knowledge by filling that gap. ITO and BPO clients and practitioners, as well as politicians, lobbyists, and labor advocates will find the results pertinent.

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