Offshore Sales to Grow for U.S. Businesses

This is the third year of the study sponsored by Accenture, conducted by S. Radoff Associates. The survey includes responses from 160 sales and marketing and supply chain management executives at companies with large revenues. Expectations this year are for offshore revenues to represent 35% of total sales. The figure was 26% three years ago.

Of all global markets, China represents the most important emerging market and 82% of those responding indicated they intend to upgrade operations there. India is the second most important market, garnering 56% of interest from respondents, with Eastern Europe having importance for 38% of those responding.

While these statistics seem rosy, things could be better. Some 47% of those surveyed say that poorly designed or executed global operations strategy contributes to a failure to grow market share in these emerging markets. Further, according to the study, 40% of the companies feel they don’t have a global procurement, manufacturing and distribution network that will deliver product on time, on budget.

Moves to upgrade global operations are a priority for 97% of respondents, motivated for 80% by the desire to enter new markets and for 67% in order to overcome new competition from emerging market companies.

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