One would think cash-strapped companies would find a heavenly match on foreign soils with plentiful, cheap labor. But that would be the romantic notion and not necessarily the reality. "Companies often 'plan for the wedding, but not for the marriage,''' says Dalip Raheja, chief executive officer and president of the Mpower Group. Now that offshore outsourcing is roughly a decade old, it's time to evaluate lessons learned and tally the real costs before renewing any vows.
"After a period of explosive growth in offshore outsourcing many companies are moving past the learning curve when it comes to the tangible costs of moving services and production offshore," explains Raheja. "Experience has built more certainty around what was once considered previously 'hidden costs,' or costs related to transition, development, selection, etc., which could easily cancel out any financial benefit of doing business offshore."
