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7 Lessons of the offshoring pioneers

Stephanie Overby | April 22, 2013
The need to remain competitive has kept offshoring an essential part of nearly every company's sourcing strategy.

"IT budgets are under pressure year-on-year and if a client beats the provider down on price every year, quality will suffer," says Arora. "The larger clients are learning this the hard way, and hence being fair in pricing will be important to retaining quality."

"You must be invested in your service provider's success," adds Herrera. "Offshore pioneers recognized working remotely would have some challenges--culture being perhaps the most significant--and definitely made extra efforts to ensure mutual success. Relationships that turn adversarial tend to have one or both parties unconcerned about the others' results."

7. Some Things Weren't Meant to Go Offshore

Premium-level customer service. Graphical user interface design. Highly collaborative development work or business processes. Lots of early offshore users learned the hard way that not everything is suitable for offshore deliver.

"The industry has grown immensely because so much is indeed suitable for offshore, but there are some niche services that seem to be best left onshore or nearshore," says Herrera. "Strategic development projects are best left to people who have deep experience with the business, which generally does not include people on the other side of the globe who you have never met," says Strichman.



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