Outsourcing vs. In-house: By How Much Do U.S.-based Workers Outperform Their Offshore Counterparts?

The average worker in United States (US) take more initiative, are more innovative and more understanding of the business than their offshore counterparts, according to new research published by HfS Research, an IT services research firm and consultancy, based on a survey of 235 enterprise buyers of $1 billion or more in revenue.

U.S.-based workers also work harder than non-U.S.-based staff – the difference was 83% to 79%. When it came to cultural and communication skills, U.S. based staff was rated 82% versus 33% for offshore staff. In taking initiative, it was 77% to 40%, and for being innovative, it was 77% to 45%.

“U.S.-based workers more often exhibit skills deemed most relevant to productivity in today’s business environment,… U.S.-based workers more often exhibit skills deemed most relevant to productivity in today’s business environment,” the HfS report said.

Key Findings

– Outsourcing is no longer only an offshore game; onshore workers are now viewed as outperforming offshore when it comes to key attributes.

– Understanding the difference between the Yankees and Red Sox is critical; contextual understanding is key to client satisfaction.

– Enterprise buyers have realized they get what they pay for, but cost still trumps quality.

– Business leaders acknowledge that the potent combination of capability and narrowing cost is leading them back.

– As a result, the U.S. can be a vital component of a global business delivery model: When enterprise buyers analyze the skills they actually need for performance, many will turn to onshore delivery. But offshore locations reign when it comes to IT services, with the majority of enterprise buyer respondents already operating in non-U.S. locations and/or are interested in shifting more IT work to non-U.S. locations.

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