Offshoring: What Can Go Wrong?
Norman Matloff
C
omedian Woody Allen said, 80 percent of success is showing up. On the topic of offshoring, that records it all. humans turn over best in physical proximity to distri neverthelessively separate. Yet today, global differentials in pay rates achieve it tempting for companies to employ people working
to offshore its IT workâ"specifically softw are development and maintenance? Ill discuss several(prenominal) reasons for firms to be wary of this practice. For several(prenominal) managers, these considerations top executive tip the eternal rest against offshoring. For those who wish to offshore anyway, this article can serve as a map of the pitfalls to try to avoid.
Distance, cultural differences, inexperienced programmers, and other obstacles might make you wish youd kept that IT understand at home.
tens of thousands of miles from the home baseâ"a client in the US offshoring IT work to a vendor in India or China, for example. Can it be d maven well? Offshoring has recently carry on much criticism, mainly over the issue of whether shipping IT work abroad is good for the US as a whole. I have written in that context as well, but my focus here is at the company level. Does it bene?t a US ?rm
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00 © 2005 IEEE
THE VALUE OF FACE TIME Proponents of offshoring blithely say that companies can overcome any geographical obstacles by exploitation the proper tools. But no matter how advanced your telecommunications tools areâ"videoconferencing, software for managing collaborative development, and so onâ"its assuage not the same as being there. Indeed, the work models of vendors from India decorate this point.Although the bulk of
a projects team might be in India, the offshore ?rm typically stations some team members onshoreâ"that is, at the clients site. A University of Rochester study found that the typical ratio is around one onsite worker to every two offshore workers (Ron Hira, U.S. Immigration Regulations and Indias Information Technology Industry, Technological...If you want to get a generous essay, order it on our website: Orderessay
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