IT outsourcing buyers should start looking beyond just cost savings and looking at ways their offshoring/outsourcing service providers can add value. Looking at offshoring initiatives as only a cost savings effort will significantly impact these organizations’ ability to initiate improvements in their business process and react quickly to business changes. When cost savings are the only focus, offshoring vendors will only look at optimizing the solutions they are working on without understanding or worrying about how the solution fits into the customer’s IT strategy.
IT offshoring buyers should start treating the offshore providers as partners and take time to explain their business model, customers and IT, R&D and business process requirements of the company and also the management team of partner organizations to take key decisions. This would empower the service providers to be able to add more value to their offerings and be fast and flexible to changing needs of their customers.