Why offshore outsourcing failsTuesday, September 27, 2005
Many companies are rushing in completing offshore deals which can affect the quality of offshore outsourcing services. The majority of companies are running into offshore outsourcing just for cost-saving. There are factors like hidden costs, poor communication, traveling costs, 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 deals, actual benefits come after the initial stage gets over and steady-state starts which are around 12 months of engagement. The 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 that is becoming bigger and bigger is the high turnover of offshore software development staff in India.
TatvaSoft is an offshore outsourcing company providing offshore software development and outsourcing services to clients in the US and Europe in different technologies.