As the need to gain competitive edge tightens, companies that were once content to cultivate their local and national markets are now keen to globalise their operations and tap into new markets. Global sourcing, and specifically low-cost country sourcing, is a hot topic. Legitimised by early pioneers, offshore providers proved their value as alternative resources. Companies initially questioning why you would source from low-cost countries are now asking: why wouldn’t you?
As familiarity with the available opportunities has increased, so more enlightened companies have come to focus less on achieving incremental cost improvements and, instead, are evaluating all their capabilities to define a winning global sourcing strategy. They see global sourcing as a long-term strategy rather than a tactical solution for short-term goals.
The global deployment of work has its critics, but it can be argued that it holds huge opportunities for procurement: companies can benefit from lower costs, faster times-to-market and access to a massive pool of skilled resources, resulting in substantial value to the bottom line.