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	December 27, 2004 Offshore Outsourcing: Internal Preparation, Not Labor Rate, Is Key To Savings And Success by Stephanie Moore with Bill Martorelli, Adam Brown	Average: 9  (2 ratings)

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Executive Summary

Companies outsourcing offshore do not sufficiently invest in internal preparation and organizational change management activities. Most rushed into offshore outsourcing to take advantage of the savings opportunity — an opportunity that proves elusive to all but 35% of companies surveyed. The savings, mostly available because of the difference in labor rates, quickly disappear when the complexities of an outsourcing relationship are realized. To reap the benefits of offshore outsourcing, companies must alter their processes, expectations, and employees' skills, roles, and responsibilities. In addition, they must develop an outsourcing strategy that defines their objectives so that organizational changes accommodate these objectives. Companies that neglect internal preparation requirements will not achieve the savings or efficiencies available in offshore outsourcing relationships. Furthermore, they may lose money and damage the relationship between the business and IT.

TABLE OF CONTENTS

• Offshore Outsourcing Efforts Are Compromised By Failure To Prepare
• Case Studies: Ill-Defined Objectives Affect Program Success
• Internal Due Diligence: How To Successfully Outsource

RECOMMENDATIONS

• Offshoring Must Start With Internal, Not External, Due Diligence

ALTERNATIVE VIEW

• Process Optimization Change Obviates The Need For Offshoring
• Related Research Documents

This is an excerpt

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