Why offshore outsourcing fails
Many companies are rushing in completing offshore deal which can affect quality of offshore outsourcing services. Majority of companies are running into offshore outsourcing just for cost saving. There are factors like hidden cost, poor communication, traveling cost, cultural training etc. which can offset the cost saving. Also there is some startup cost and planning cost which is not considered by the companies. In many big long term offshore outsourcing deal, actual benefits come after the initial stage gets over and steady state starts which is around 12 months of engagement. Communication gap or miscommunication between client or onsite team and offshore software development team can also affect the project development. Same way, miscommunication between management and employees can also affect. Another issue which is becoming bigger and bigger is, high turnover of offshore software development staff in India.