How will Trump’s mission to trump outsourcing affect print?
With every changing of the guard in Washington comes some trepidation. The current administration’s positions on outsourcing, or more specifically “offshoring” is clear. What is not clear is what impact that will have on print markets. And in the interest of full disclosure, we should probably set the correct expectations by saying that this post may raise more questions than it answers.
HfS Research CEO and Chief analyst, and Horses for Sources editor, Phil Fersht uncovered the real issue in a March post titled, “The traditional outsourcing model officially out of value, but the future is bright for co-innovation partnerships”. Apparently the challenge with the real luster of sending work overseas was the ability to take up to 30% off the cost of processes. How’s all that working out? Here’s his summary of the data a study of 454 outsourcing buyers from major enterprises.
The VPs and below are those who are managing the engagements – and not even a third of them view their engagements as being very effective at driving out significant cost or making their operations more flexible and scalable. Their bosses are slightly less cynical, but still the vast majority is underwhelmed.
Phil Fersht, Horses for Sources
Xerox recently took a look at the issue, citing anecdotal evidence that commercial printers are actually bringing work such as large format print, mailing and fulfillment services back in-house. See the link below.
Bottomline: Sending work abroad simply isn’t avant garde any more, and it may raise attention (maybe even a tweet). But, the impact of DC’s staunch position on the subject is yet to be determined.