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When I begin the engagement, one of the first questions I ask client management is to help me understand their offshoring strategy
When I begin the engagement, one of the first questions I ask client management is to help me understand their offshoring strategy. Quite often I get a blank stare that says something like “Is that not obvious?” When pressed, usually the answer is to reduce cost. Upon further analysis, I usually find that over a period of time since offshoring effort began there has been turnover of management and if there was a vision up front no one can now articulate it in a cohesive manner and for sure not something the whole management team would agree on.
In order to answer the question if offshoring continues to make sense, as part of your offshoring strategy, business reasons for initially going offshore must be spelled out. Despite what many people assume, it is not always cost; cost is the most common reason, however. Other reasons are to have a beach head in a growing economy like India or China to take advantage of market opportunities, to have regional presence to provide support to that part of the world more easily (regardless of cost).
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