OFFSHORING – MYTHS, MONEY & TIME

While businesses have been outsourcing IT workloads for decades, the internet age has witnessed a marked surge in the number of organizations looking to form development agreements with outside partners. Advancing countries throughout Asia and Eastern Europe have become prime destinations for American companies allured by cheap software development labor. India, in particular, has emerged as a global leader. Other top offshoring locales include China, Ukraine, and Vietnam.

Blinded by attractive rates, some clients rush into these relationships without first grasping the significant disadvantages that can arise with utilizing overseas development. Analysts estimate that “50% of offshore outsourcing contracts signed by North American companies fail to meet their expectations. Through their offshore journeys, companies often realize that expected cost savings are much smaller, and problems are more difficult to address in comparison with co-located development.”

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