"Retailers Can No Longer Afford To Rule Out Offshoring Without Careful Consideration", Notes Managing Consultant At Alsbridge

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Alsbridge, the independent advisers on Outsourcing, Shared Services and Offshoring today circulate a new article which puts forward the case for offshoring in the retail sector as a means to get the most out of back-office spend.

Alsbridge, the independent advisers on Outsourcing, Shared Services and Offshoring today circulated a new article which puts forward the case for offshoring in the retail sector as a means to get the most out of back-office spend. The perspective is set to make essential reading for the sector, at a time when more and more senior retail executives are reconsidering their sourcing strategies.

The article, titled “The “O” Word: Why are retailers scared of offshoring?” challenges the widely held misconceptions that explain why retail has been slow to embrace the offshore model compared to other industries:

‘Retail is too local for offshoring’

Retailing is driven by the demands of doing business locally. As a result, local store operations naturally dominate the costs and thinking of most retailers. But despite this many processes such as finance, HR or IT, have basically no requirement for physical proximity and can be offshored.

‘Retail systems are too different’

Retail systems are often based on highly tailored industry-specific technologies or poorly integrated legacy systems, and can appear to be too dependent on local nice niche skills to go offshore. This underestimates the depth of skills available offshore and ignores the fact that many service providers now have dedicated retail offshore verticals, and offshore technical teams specialising in retail applications such as Retek or JDA.

‘Offshoring is just for the global elite’

The retail pioneers in offshoring have been predominantly global players. Most firms do not have the scale of Tesco or Amazon, but the average offshoring deal size is getting smaller - five years ago, a typical offshore business case may have needed 100-150 resources to be worthwhile, today some offshore service providers are happy to take on projects of as few as 15 workers.

Paul Morrison, Managing Consultant at Alsbridge comments “No retailer can afford any longer to rule out offshoring without careful consideration. It may not be the right sourcing decision for all, but we are certainly seeing a growing body of offshore believers in the retail sector, hoping to keep the offshore advantage to themselves”.

This report can be downloaded for free here free download at http://www.alsbridge.com/why_retailers_scared_offshoring.shtml. Alternatively, please email helen.ricardo@alsbridge.com or call +44 (0)20 7242 0666.

About Alsbridge

Alsbridge (http://www.Alsbridge.com) is the premier Outsourcing, Shared Services and Offshoring advisory firm with a staff of over 100 advisers headquartered in London, UK and Dallas, TX. Our consultants average over 15 years of industry experience and have served as managing partners and senior executives at leading firms such as Ernst & Young, Capgemini, EDS, Accenture, PwC and KPMG. Alsbridge provides clients with unmatched experience and in-depth industry knowledge in reducing costs, improving service levels and maximizing shareholder value through the use of both on and offshore outsourcing and shared services.

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Derek Toone
ALSBRIDGE
214-696-6410
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