The Return of “Onshoring”

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We are all familiar with the offshoring trend that has taken place across the industry over the past couple of decades; that is, moving our call center operations to other countries in order to achieve lower costs.  As this has become more common, so have the complaints by end customers about such things as language barriers and lack of cultural understanding.  A new article released by McKinsey talks about an onshoring trend occurring in other industries.  This trend involves locating operations in "second tier" cities.  In the U.S., these are typically found in the rural areas where labor and other operational costs are still competitive with common offshore locations.  While the article does not refer specifically to call centers, it is still applicable and an interesting read.  Click the link to view the article.

https://www.mckinseyquarterly.com/Operations/Outsourcing/IT_services_The_new_allure_of_onshore_locales_2661?gp=1