New York: Despite the challenges to moving IT, business process and contact center services to India, China and other overseas locations, American companies are satisfied with their offshore outsourcing initiatives and plan to expand such operations, a new study shows.

Companies with significant outsourcing experience have moved or are moving toward a strategy of multiple locations, multiple vendors and a judicious blend of both in-sourced and outsourced models to minimize risks and maximize flexibility, it found.

Conducted jointly by the Weissman Centre for International Business at Baruch College and The Paaras Group, the just-released study is based on comprehensive surveys and in-depth interviews with 38 global companies, mostly in North America.

It found that offshore outsourcing continued unabated last years especially as companies gained confidence in their ability to manage offshore operations.

It also found that outsourcing delivered significant benefits to pioneers as well as newcomers last year and the companies were able to improve their quality while cutting costs.

"Despite protectionist backlash in the US and Europe, the offshoring wave has turned into a Tsunami - an inevitable outcome of globalisation and economic integration," said Suresh Gupta, managing partner, The Paaras Group.