SMEs turn to offshoring in 2010

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SMEs turn to offshoring in 2010

Fisseha Tegegn

Almost a quarter of UK small and medium enterprises (SMEs) are considering offshoring some aspects of their businesses in 2010.

And one in 10 say they are very likely to offshore elements of their businesses by next year, a survey by ICM on behalf of the development body for Sri Lankan outsourcing, SLASSCOM reveals.

Martyn Hart, chairman of the National Outsourcing Association, said: "Many larger businesses have already reaped the benefits of offshoring business models and now it is the turn of the SME."

The recession has led to 20% of SMEs' showing more interest in offshoring. However, for 28% of SMEs, the biggest driver behind offshoring is the cost of UK labour, and for 13% per cent the lack of available UK skills is the main reason.

SMEs said they would be most likely to offshore IT development and maintenance, data processing, customer services, other back-office processes and finance and accounting.


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