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Management article
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Reference no. F1103C
Authors: Aditya Pande
Published by: Harvard Business Publishing
Originally published in: "Harvard Business Review - Forethought", 2011
Revision date: 12-Feb-2013

Abstract

In recent years IT professionals have been onshoring service work to low-cost American or European cities. But this can be problematic because of labor shortages, rising wages, and other pitfalls. Companies should take three steps to ensure the success of their IT onshoring: They must choose the location wisely, making sure they're the first company to move in and that the location has the talent they need; they should onshore only work that is restricted or requires special skills or knowledge of legacy systems; and they should minimize wage pressures by keeping employees fully engaged and attending to their professional growth.

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Abstract

In recent years IT professionals have been onshoring service work to low-cost American or European cities. But this can be problematic because of labor shortages, rising wages, and other pitfalls. Companies should take three steps to ensure the success of their IT onshoring: They must choose the location wisely, making sure they're the first company to move in and that the location has the talent they need; they should onshore only work that is restricted or requires special skills or knowledge of legacy systems; and they should minimize wage pressures by keeping employees fully engaged and attending to their professional growth.

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