Alpharetta, Ga. -- A surprising 9 out of 10 Chief Executive Officers, Chief Financial Officers and Chief Technology Officers from U.S. companies that currently offshore are considering bringing work back home in the face of mounting problems. More than 45 percent of these executives want a U.S.-based alternative to offshoring, according to a nationwide survey.
Other key findings include:
- Up to a third of companies reported major problems with their offshore operations linked to travel costs, infrastructure, knowledge transfer, turnover, security, quality and cultural issues, and declining morale with employees at home
- While executives expected 30 to 40% savings from low offshore labor rates, actual savings ranged from -20 to 20%
- Approximately 1 in 10 projects were reported to cost more offshore than onshore.
The nationwide survey was commissioned by Aelera Corp., an Alpharetta, Georgia-based technology development services company, and was conducted in June 2004 with more than 200 U.S. executives. Nearly three-quarters of respondents were from companies larger than $100 million in annual revenue and more than 25 percent of respondents were from companies larger than $1 billion in annual revenue.