The discussion about outsourcing continues to be an on-again, off-again affair -- that is, onshore and offshore.
Certainly, the basic value of outsourcing has been well documented. Benefits range from dramatic cost savings to reduction of inventory and allowing companies to focus on core competencies. What is still up for debate, however, is whether to adopt an onshore or offshore approach.
While each approach has distinct merits, it is instructive to examine specific outsourcing scenarios to determine which line of attack is optimal. For example, if you are a North American company seeking to outsource development of a prototype for a new high-tech offering, or software development for a major upgrade to your company's flagship product, the onshore strategy is a significantly better method. Let's examine the rationale.
