Saturday, March 5 2005 13:03 Hrs (IST) - World Time -

Houston: As more and more companies are seeking the cost savings and competitive advantage offshoring promises, most experts see no end in sight to the outsourcing trend.

However, with an estimated half of all offshoring operations destined to fall short of expectations, companies are under increasing pressure to calculate the risks, not merely the rewards that offshoring entails, according to a recent report by The Conference Board.

The report, "Thinking Offshoring Through: A Framework for Decision Makers", reveals that unless corporate leaders address the full spectrum of offshoring challenges, underperformance will only grow and the impact on corporate operations will be significant.

The current report is a summary of an extensive study The Conference Board is releasing in instalments over the next three months, which comprehensively examines the complex issues surrounding offshoring.

It is designed to add reason, substance and perspective to an emotionally charged issue - one whose sensitivities pose particular challenges to corporate leaders who must reconcile the often conflicting interests of stakeholders.

"Companies now need a comprehensive decision-making framework to help senior executives rationally and systematically assess the risks and rewards of offshoring," says Ton Heijmen, Senior Advisor to The Conference Board on Offshoring and Outsourcing.