Deciding offshoring suitability


    Many is the time when the offshoring initiative fails or does not create optimal impact because of lack of knowledge and understanding of the offshoring suitability and offshoring roadmap of various products/applications/processes. What is required is to clearly assess the level of complexity attached to each product/application/process, to the most granular level possible.

    • Customer Complexity – such as customer feasibility, data sensitivity and business criticality
    • Resource Complexity – such as organization structure, skill sets required and cultural dependencies
    • Technology Complexity – such as product life cycle (PLC), architecture complexity, dependencies and testing complexity
    • Process Complexity – such as knowledge transfer, communication, project tracking, development process and risk management
    • Infrastructure Complexity – such as IP, security, hardware, software and network

    After one has assessed the complexity levels, one would also need to assess the financial benefits attached to each product/application/process. Analyzing the complexity involved in conjunction with the financial benefits (savings) attached would help a company decide the following:

    • Offshoring Roadmap
       – What to offshore
       – When to offshore
    • How to manage risks attached – risk mitigation plan

    — Kirti Saboo
    Senior Consultant, Advisory Services