Industry analysts have said that as many as half of offshore outsourcing engagements aren't delivering expected value. That's why we thought this was a good time to repost this article from 2002, which contains plenty of insights into project management and ways to derive expected cost savings from offshore.
Business outsourcing has been a topic of interest ever since the first merchant ran out of floor space, but of course, much has changed. Today, every sort of e-business rationale is associated with handing off duties to second and third parties: cost, scalability, fast-changing industries, core-process focus, the economic downturn, et cetera.