Does cheaper also mean riskier?

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The Conference Board yesterday published an announcement of a study conducted on the implication of offshoring and outsourcing. The study entitled "Offshoring Poses Crucial Human Resource Challenges at Home, Overseas" has been conducted by The Conference Board, a non-partisan and not-for-profit business membership and research organizations.

According to the announcement potentially massive savings in wage and benefit costs continue to drive the global offshoring movement, but companies are facing a wide range of people management issues both overseas and at home.  "Does cheaper also mean riskier?" the new study asks and indicates that already, increases in demand for IT skills, for instance, are driving up pay levels, especially in such centers as Bangalore and New Delhi in India.

The study emphasizes that companies must look beyond wages to consider benefits, training and other costs before they outsource and also consider transportation, cultural and other expenses related to offshoring.

Source: The Conference Board