Backbone IT trumpets offshoring - Better than outsourcing, says UK firm

By Nick Farrell @ Wednesday, May 21, 2008 9:00 AM

Section - Outsourcing/Outsourcing

UK-based Backbone IT claims that off-shoring saved it money, got it new business and fuelled job growth at home.

The Lancaster company, which offshored its operations to Nanjing, is leading calls for Western firms to abandon plans for overseas outsourcing. It claims investing in offshore operations was much better than outsourcing. It claims it has had a ten-fold increase in business since it set up its own offices in China.

It claims that it has seen cost benefits comparable with outsourcing, without the associated problems. Andrew Clarke, co-director at Backbone IT Group said setting up an overseas operation had proved to be an excellent asset to the business.

Foreign outsourcing sometimes means high costs and unforeseen delays caused by language and cultural barriers. Off-shoring means that the company is more in control of its operations, he said. The company has managed to win some lucrative deals inside China, Clarke added. X