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View More Press Releases by eePulse, Inc.

Press release:

Leaders Suggest Thinking Twice Before Outsourcing Jobs Overseas

Issued by: eePulse, Inc.

Date: Apr. 27, 2004

University of Michigan, Leadership Pulse Study respondents want to keep work in the U.S.

ANN ARBOR, Mich. – April 27, 2004 – In an effort to provide more detail about the extent of outsourcing and the location where jobs are being outsourced, the March Leadership Pulse asked a series of questions about this topic, and a total of 74% of the 561 survey respondents stated that they were either already outsourcing jobs in 2004 or planned to outsource jobs during the year. The Leadership Pulse is a research project conducted by Dr. Theresa Welbourne of the University of Michigan Business School and eePulse, Inc. to measure the effects of key resources and confidence levels on overall business growth and performance.  

According to the respondents who are outsourcing, the following jobs are currently the target of the outsourcing efforts:  

•58% - programming jobs
•57% - other professional, non-programming jobs
•54% - service jobs
•44% - administrative, back-office jobs
•38% - manufacturing jobs

Additionally, respondents were asked the degree to which their outsourcing was to a country other than their home country. In response to this question, 94% said that from 1-25% of their jobs being outsourced were going overseas, and only 6% said that 26% or more of the outsourced jobs were being given to countries other than their own.

The feedback from people who are outsourcing work to other countries was coded, and the following three categories of responses were identified:      

• Category #1:
Respondents indicated that leaders should support their own country and use overseas outsourcing as little as possible.

• Category #2:
Participants indicated that leaders should consider cost structure, cost-efficiency, analysis of time, quality, material cost, labor cost, transportation overhead, and legal costs when considering outsourcing.

• Category #3:   
Leaders suggested that you should ask outsourcing references tough questions, check for strong skills and do background checks

While 26% of 561 respondents indicated that they are not outsourcing work at this time, those who are outsourcing are doing so with the following countries:

•     35% India
•     15% China
•     6% Mexico
•     6% Canada
•     5% Taiwan
•     4% Malaysia
•     3% Philippines
•     3% United Kingdom
•     2% Ireland
•     2% Australia
•     2% Russia
•     2% Singapore
•     2% Spain
•     2% Turkey

“The results of the Leadership Pulse study indicate that leaders are learning quite a bit from their outsourcing experiences, and they are ready to share that learning with others,” states Welbourne.“ The comments about keeping work in the home country may be a function of outsourcing efforts that are not going as smoothly as anticipated, or it may be in response to the ongoing discussions about job loss. In today’s global business environment, outsourcing is a phenomenon that is certainly here to stay; however, it’s important that we all learn from each other and then do outsourcing in the most effective ways, at the right time and with the right types of jobs. Both in the Leadership Pulse research and in eePulse’s ongoing processes that work within organizations, we continue to collect data on best practice and pass that information on to leaders who want to understand the most current learning from experiences in this area.”  

Persons requesting more detailed analyses of these data or individual managers who wish to be included in the Leadership Pulse study can contact Dr. Welbourne at 734.996.2321. A website is available for individuals who wish to participate in the study or for those organizations that would like to have up to 50 senior leaders participate in the study. If a company participates with multiple executives, it will receive monthly benchmark data at no charge. If interested in individual participation or expanded participation for benchmark reports, please visit either www.eepulse.com (see Leadership Pulse) for more information or sign up at the following web site: www.umbs.leadership.eepulse.com.

About Executive Education at the Michigan Business School

Executive Education at the University of Michigan Business School is made up of world-class educators and researchers renowned for their skill in creating and integrating knowledge with practical application. Their academic backgrounds are coupled with their direct involvement with leading companies worldwide. In fact, Business Week's 2003 Executive Education survey has named Michigan among the top three providers of executive education in the world — a distinction they've been honored to receive throughout the fifteen year history of the ranking. In order to meet the changing needs of customers and the competitive environment, their executive education programming consists of “Centers of Excellence” which focus on topical areas that mirror the multidisciplinary nature of the issues facing businesses today. They offer a wide array of choices for executive and organizational development including a comprehensive portfolio of over 40 high-impact, public and custom programs, workshops, executive forums, symposia based on topics of current interest, a speaker's bureau of offering topic-specific experts for company meetings and other forums, and executive mentoring services. For additional information, please contact Executive Education at the Michigan Business School at um.exec.ed@umich.edu, 734.763.1000. About eePulse, Inc.

eePulse, Inc. delivers web-based leadership tools for continuous improvement and change management. Using eePulse’s proprietary web-based enterprise-wide software suite called Measurecom™ (measurement and communication), organizations and leaders immediately improve their performance. Productivity enhancement comes from action taken in response to real-time stakeholder information. Using Pulse Survey and Pulse Reporting engines, data are provided as frequently as weekly so that immediate action can be taken to confront “breaking news.”  Managers solve problems and pursue opportunities today, improving quality, enhancing customer service, realigning strategy, and improving organizational agility, learning, and performance at all levels. The complete Measurecom product suite includes Pulse surveys, Pulse Reports, Communicate-back tools, Issue tracking, Action planning, Learning modules, Proprietary metrics such as Energy Pulse, Suggestion Pulse, and ChangeStep Pulse, in addition to ROI analysis and reporting. For additional information, please call 734.996.2321 or visit www.eepulse.com.

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For more information: http://www.eepulse.com

View More Press Releases by eePulse, Inc.

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