[jsfg_cinti] Offshoring: It's not just for IT, anymore

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Story URL: 
http://www.silicon.com/research/specialreports/offshoring/0,3800003026,39122377,00.htm
 
            
Offshoring: It's not just for IT, anymore
Sylvia Carr
silicon.com
July 19, 2004 
        
For most people, the word offshoring brings to mind IT work and low-skill jobs 
such as call centres. 
           
Yet the next big wave is going to involve the outsourcing of high-skill or 
'knowledge' jobs such as accountants, lawyers, engineers and doctors to foreign 
countries. 
           
Mark Kobayashi-Hillary, author of Outsourcing to India: The Offshore Advantage, 
said: "This is the hot growth area [for offshore outsourcing]." 
           
Knowledge process offshoring, or KPO, is expected to grow faster over the next 
six years than general business process outsourcing, or BPO, a term used to 
refer the outsourcing of a complete business function such as HR. 
...
Examples of KPO would include a law firm outsourcing basic case research to 
paralegals in a foreign country or pharmaceutical firms conducting R&D for new 
drugs in offshore facilities. 
         
India would be particularly well-suited for KPO because of its abundance of 
educated workers. 
...
Cost savings are the number one motivator for offshoring IT and business 
processes but this is an even greater factor with high-skilled work, said 
Kobayashi-Hillary, because "the potential savings between hiring a chartered 
account in the UK and in India are much larger than, say, a call centre 
worker". 
...
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