Now that many global companies have already used offshoring to India and China to reduce the cost of their operation, the question which remains on the table is: What is the next step? What should be my focus to reduce the cost now?

Well, I found a fantastic video from Forrester Research Vice President Stephanie Moore which outlines some of the big trends driving sourcing evolution. he video is from Forrester Sourcing Forum, November 8, 2007 in Orlando.



As Stephanie mentioned, the time of focusing on labor cost has come to an end; the new paradigm is selective sourcing and if we want to be preferred suppliers to our clients, we have to work on two things: Process and IT standardization.

She mentions that now the companies need to form a holistic relationship with their suppliers to win.