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For Sourcing & Vendor Management Professionals

Key Preparatory Moves That Firms Need To Make Before Going Offshore

August 2, 2007

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  • By Stephanie Moore

Why Read This Report

The bulk of offshore outsourcing savings comes from process optimization and standardization in the IT and IT client community. Unproductive staff, poor requirements management, poor project management, lack of standards, and dissatisfied, undisciplined IT clients all contribute to inflated IT budgets and the oft-discussed misalignment between IT and the business. Offshore outsourcing will not fix those problems, it will exacerbate them. In fact, offshore outsourcing cannot be done effectively unless these problems are understood and resolved forst or at the very least, in parallel with the effort. To reap real cost benefits, companies must internally prepare for an outsourcing relationship by altering their processes; expectations; and employees' skills, roles, and responsibilities. Companies that neglect organizational change management requirements will not achieve the savings or efficiencies available in offshore outsourcing relationships and they may lose money and damage the relations between the business and IT.

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