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Outsourcing News : Article

Offshore Operations: Local firms balance risks and benefits

Despite the risks of war, natural disasters, and the like, local companies are daring to invest more and more in offshore operations in developing countries to compete globally

Macadamian Software, an R&D outsourcing firm, runs one-third of its operations in politically volatile India as well as in Romania. It plans to increase offshore operations to two-thirds of its business in five years.

"You have no choice," said Matthew Hately, Macadamian's vice-president of marketing. "It's extremely hard for Canadians to be cost-competitive without investing offshore."

OCM Manufacturing opened a purchasing office in Shenzhen, China three years ago, despite all the risks involved in operating in a country notorious for corruption, red tape, and potential natural disasters.

Read entire article on Business Journal

Posted: Monday, July 31, 2006

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