Offshore outsourcing, if managed right, can provide tremendous leverage to a company. A number of developing countries, such as India, Malaysia and Philippines have become a great destination for IT and business process outsourcing. This has become possible because these countries now provide a robust platform to conduct business in terms IT infrastructure, very skilled software engineers, English language proficiency, maturity of processes and quality control standards, and much improved and friendlier regulatory systems. On top of this, you can get these services at ¼ or less of onshore price. The business case is compelling.

Everybody wants to ride the wave of offshore outsourcing and slash their IT budgets but not everybody is succeeding. In number of situations the promised returns do not come to fruition. Some of these outsourced projects gets delayed, produce poor quality, and not only leave bad taste in employees, businesses also loose significant cost saving advantage . But we believe that key to success lies in thoughtful and realistic management of these outsourcing initiatives. Organizations have to consider a number of factors to fully reap the potential of outsourcing; some of the key factors are:

• Executive alignment and commitment to outsourcing
• Well defined and realistic business case
• Creating favorable outsourcing culture within the organization
• Selection of functions and processes to be outsourced
• Selection of outsourcing partner
• Execution Plan from Pilot to full implementation
• Plan to redeploy displaced resources
• Monitoring and Control
• Organization Learning and recalibration
• Validation of business case
• ...