Sunday, August 26, 2007

What are the pros and cons (client perspective) of offshore outsourcing, co-shoring and just local outsourcing?

Hi ..........., Here is the generic concerns that I get back from our clients:

Off-shore Cons:
- Lack of existing technical skills (e.g. difficult to find people with a certain skill set like Check Point firewalls, Juniper VPN solutions)
- US Customer dissatisfaction for the accent (for voice ,e.g., telesales, helpdesk)
- Security concerns for the data
- Political instability
- High turnover rate for the employees (in India)
- Poor management skills (problem in China)
- Legal concerns

Off-shore Pros:
- Cost
- Solid technical education (you can hire MS degree engineers out of 1500 applicants per position in India for a call center, in US the best pool you have is the high school graduates)
- Good practices (most of the outsourcing providers have ISO 27001, CMM L5, ITIL etc) bring good quality
- Ability scale up easily
- Good execution

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