Weighing the Benefits of Offshore Outsourcing

Topics:
Strategic Management Tools
Tags:
Benefit,
Business Operations,
International Data Group,
It Operations,
Offshore Outsourcing,
Outsourcing,
Outsourcing & Subcontracting,
Vendor Selection
Source:
IDG (International Data Group)

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Overview: Offshore outsourcing can lower some costs, but it comes with additional expenses like vendor selection and the cost to transition work to outsourcing providers. While application development is sent offshore more frequently than other IT activities today, business process and help desk/support are areas where offshore outsourcing will grow dramatically. While offshore outsourcing can lower some costs, it creates new expenses for the organization, including vendor selection costs, legal/contract costs and transition costs. Additionally, sending IT functions offshore creates challenges for CIOs like managing communication, cultural differences and a lack of internal processes for specifying work.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: HTML | Date: Sep 2003 | Pages: 5


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