From: Gartner
In the current climate, offshore software outsourcing may appear to be inevitability for many companies. You should weigh certain factors before you make such a move. Among them are:
Cost – Take into account the total cost of the move. It may save you some money and increase your competitiveness but some costs may not be readily apparent. Don’t forget to consider elements such as physical and system infrastructure, telecommunications, and management overhead.
Protection of intellectual capital – You should expect greater difficulty in managing the loss of intellectual property (IP) and the retransfer of IP in offshore situations.
Understanding of local business requirements and culture – Providers often lack executives on-site who can interact effectively with higher level executives.
In addition to performing due diligence in assessing factors like these, be sure that your internal debate takes into account the concerns of all your key stakeholders. Offshore software outsourcing can be profitable but only if you develop a sourcing strategy that weighs and then diminishes risks
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