Offshore outsourcing is no longer a novel idea. It is an accepted business practice and for many the offshore operation has become a significant part of their overall operations. So it is essential they succeed in this endeavor. However the reality is that better than 50 percent of offshoring initiatives fail to meet original expectations. Successfully managing offshore projects requires that you understand the major challenges. These have broken down into two categories, External and Internal.
External Challenges
Staffing and retention
Competition for the right skills in countries like India is very high, you need to determine whether the vendor has and can offer you the staff with right level of experience. Once you establish a team, you need to proactively manage staff retention.
Time Zone Differences
Your staff in the US will need to get used to staying up late and/or coming in early for telecons with the offshore team.
Country and vendor infrastructure
Both can be issues, you need to determine if your project needs special tools and/or other infrastructure.
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