CGE&Y has developed a model called Rightshore(TM) that blends onshore, onsite, nearshore and/or offshore capabilities, key criteria that companies should consider when developing an outsourcing strategy. The Rightshore model includes four criteria:

• Onshore: Moving services provision within the same country but to a cheaper location. For example, moving a service provision from London to Scotland.
• Onsite: Service managed from the client site. For example, business critical production line support.
• Nearshore: Moving services provision to a nearby region of the world. For example, from France to Spain.
• Offshore: Moving services provision to another region of the world. For example, from the US to India or China.

According to CGE&Y, when companies develop a distribution strategy, they should consider criteria such as client dependency, cultural issues, time and cost constraints, and recommendations for the distribution of technical activities.

Bob Pryor, Leader of Outsourcing Services for CG&Y, points to the example of a routine standard process, for which companies can take advantage of reduced labor costs offshore, versus a specialized task that requires unique skills and high customer touch, which may be better executed onshore or nearshore. 

"Comparing rate cards and buying on a 'price per head' basis may be a popular approach, but it is not the right solution. To drive sustained value, companies must look beyond cost to the productivity of individuals and the organization," said Pryor.