French doubts grow over the benefits of offshoring

French businesses are becoming sceptical about the cost benefits of offshoring, the practice of moving work to cheaper overseas locations. But companies believe investing in overseas markets can save jobs at home, according to a survey published by the consultants KPMG and Medef, the French employers’ group.

..The survey suggests that the attractions of offshoring are waning. Out of 200 heads of small and medium-sized enterprises, 56 per cent said they saw no benefit in moving jobs to countries with cheaper labour markets, compared with 29 per cent last year.

Financial Times