Organisations concerned that offshoring puts managerial control at risk

One in two companies fears that offshoring areas of their business will lead to a loss of managerial control, research has revealed.

US consulting firm Booz Allen’s survey of more than 500 companies from the US and Europe found that although increasing numbers are setting up offshore departments, they are doing so nervously.

Access to qualified personnel was the main reason cited for offshoring – ahead of the low cost of labour for the first time in the annual survey.

Lack of managerial control also overtook political backlash and instability as concerns for companies setting up departments overseas.

Vinay Couto, vice-president of Booz Allen, said: “The obstacle to offshoring is more often inside a company than outside it.

“Many companies are struggling as they redesign their organisations and implement processes to support the rapid rise of offshoring.”

India remains the preferred offshoring destination, according to the survey, with China emerging as a major challenger.

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