From Shore to Shore - Is It Time to Reshore Your Business?

Offshoring has been rampant in the last few decades, decimating entire communities and changing the face of Britain. Now, some companies are starting to bring those exported jobs back home in what has been dubbed ‘reshoring’ - and here’s why.

1. Cost Yes, the very same reason that tempted people to jump on the offshoring boat in the first place is now driving them back. Partly thanks to offshoring, wages are now rising in India and other developing countries, other associated costs are on the rise too making the whole deal slightly less attractive.
Many companies have also found that they miscalculated the true cost of offshoring in the first place, sometimes so severely that it didn't save them any money at all! 2. Communication
Language barriers, cultural differences and time zone disparities all contribute to an overall communication problem so prevalent with offshoring. Whether it’s a poorly interpreted design brief, customer frustration in attempting to comprehend a heavy foreign accent or a needlessly long tech support call, most of us have experienced the inefficiencies of offshoring at some point.

3. Quality

While there are some very competent companies and individuals in countries like India, China and the Philippines, the general consensus is that home grown companies deliver a higher standard of service. Cultural and language barriers only compound this problem.

4. Supporting Local Economy

Faced with high youth unemployment on our own doorstep, there is a definite need for job creation and training opportunities. Reshoring can go a long way to helping secure a stronger economic future for Britain.

5. Privacy And Network Security

According to a study conducted in 2011, one third of companies who offshore IT say it has made their organisation less secure. Interestingly, One third said offshoring IT had made their operations more secure. The rest reported no substantial difference or were uncertain of the impact. Perhaps the lesson here is that regardless of where you do business, due diligence is important.

From Shore To Shore

Reshoring is only going to become more appealing as time goes on and the wage gap between the UK and places like India shrinks. Companies that have already started reshoring include Santander, New Call Telecom, RSA, and Aston Martin to name a few. If you too are considering the leap back to blighty then there are a few things to consider:

Reshoring must be planned with just as much care as offshoring. Costs, feasibility and benefits should be thoroughly evaluated before taking the plunge. Let us not forget that offshoring actually works very well for some companies. If you are happy with your current set up there is no sense in reshoring prematurely, if at all. Also bear in mind that there is now a shortage in relevant skills in some sectors due to the initial offshoring trend.