Organizations that outsource operations to offshore environments consistently save money by taking advantage of lower labor costs. While that's not surprising, evidence increasingly suggests that most offshore initiatives could do much better at improving cost efficiency.
Compass analyses indicate that both captive and outsourced offshore projects are often poorly planned, shoddily implemented and ineffectively managed. As a result, cost savings from these initiatives fall far short of their potential. In many cases, the failures result not from a lack of capabilities, experience or resources, but from human foibles such as arrogance, laziness or greed. In other words, good old-fashioned sin is to blame.
