Future is in globally distributed work, not offshoring

“Imagine there are no countries,” sang John Lennon, the Beatles singer in 1971. Businesses of the 21st century are gradually becoming so.

From business process outsourcing to knowledge process outsourcing to intellectual property outsourcing, businesses are moving where the resources are cheap and markets exist, dissolving boundaries. This is leading industry to take up a new expression, “Globally Distributed Work” (GDW).

Explaining the relevance and emergence of GDW processes at an international conference on “Management of Globally Distributed Works”, Kuldeep Kumar, chief co-ordinator and professor, Florida International University, said, “It is first important to understand what is the boundary of a firm.”

For Germany, Budapest is nearshoring and India is offshoring and for the US, Mexico is nearshoring and Brazil is offshoring. This means offshoring is a relative term depending on the geography of the players. “So instead of using ‘offshoring’, we can use GDW,” says Kumar.

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