Tag Archive for Research

Study Predicts Slowdown in Off-shoring to India

The Economic Times (India) reports today that “off-shoring to India will end in 8-10 years.”

This is the conclusion of a research study performed by The Hackett Group – which surveyed almost 5,000 larger firms based in the US and Europe.

The research finds that “the traditional model of US and European companies moving finance, IT, and other business services jobs offshore will reach the end of its lifecycle over the next 8-10 years, and US and European companies will simply run out of jobs which can be moved offshore to locations like India.” India currently receives almost 40% of current off-shoring demand.  The Hackett Group report finds that the “spike” in off-shoring demand as a result of the recent economic hard times “is clearly beginning to dry up. It’s critical for India to develop alternative sources of demand, to maintain growth of their business services industries.” Read more

CPO Longevity

The average tenure of an externally recruited, replacement CPO is 5.8 years. On the other-hand, a replacement CPO recruited internally can expect to serve in the role for a mere 2.9 years. This is according to a CAPS Research Focus study by Fraser Johnson, Ph.D., and Michiel R. Leenders, D.B.A.

The authors also find that “the person who holds the chief purchasing officer (CPO) position in an organization is critical for the leadership and overall performance of the supply function.” This statement is pretty intuitive – but worth mentioning none-the-less. Read more

Tracking ISM’s 2011 Manufacturing Sector Price Change Predictions

A review of ISM’s recently released 2012 economic forecast prompted a thought: how accurate was the December 2010 forecast of short-term manufacturing prices?

At year-end 2010, 68% of ISM survey participants expected the prices they would pay to increase in early 2011 by an average of 4.8%. Twelve percent foresaw price decreases averaging 4.9 percent. All in all, the total respondent population (including those who expected no price changes) expected a net average overall price change of 2.7% percent during January through April of 2011. There were, however, eleven industries where survey participants predicted increases in prices paid in the first part of 2011 would be higher than the 2.7 percent average. This is where we focused our efforts. Read more