ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
20.07.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


Failure of Offshore Outsourcing

Author: MAni Murthy Author Ranking Blue | Posted: 13-08-2007 | Comments: 0 | Views: 11 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
Sign Up Now!

Earlier several offshore projects failed for various reasons. But now all of them have learned from their mistakes to sharpen their skills in offshore vendor selection, project management, project execution and now succeeding in their offshore projects. Following are some the reasons you should know for offshore projects failure and plan before you start it.

Scope of Project was unclear
Detail about the goals, vision and scope of the project must be made clear to the offshore vendor by the outsourcing company. Otherwise problem may occur in understanding the project by the vendors and they can do different thing than what is asked to do.

Cost should not be the only criteria for project.
Often outsourcing to the lowest bidder may not be the right choice because that may reduce the quality of work. So reducing the cost should not be the prime concern. It may hamper in the project and you may have to spend more money to finish it

Timeline and Delivery
Proper delivery time and timeline should be given else again there will be a chance to misunderstanding between the companies.

Hidden Costs
Change in technology may lead to increased costs of the business. This is one of the major hidden cost that the company face. This cost are not shown at the start pf the project..

Retention of Key Personnel
Frequent turnover of key personnel in the outsourced team may lead to increase in time and effort which increases the cost of the project. Thus the project can fail. This is true in India where the employee retention rate is less than 90%.

Government Regulations
Legal bonding of both countries need to be kept in mind before starting of a projects.

Outsourcing Service Provider sometimes fail
Though this may occur very rarely but if the vendors can’t give quality work then project may fail drastically.

Cultural Differences
Since different culture people work in the offshore vendor’s team so idea in a problem varies from person to person which may misleads to the project. In fact majority of businesses that offshore IT and BPO projects quote cultural differences to be the primary problem they face in offshore projects.

Cost of Overseeing the Project
The quality and performance of the offshore service provider must be checked by outsourcing business They must also check the attention and time employee spending for the project.

Communication Problems
Different time zone from the client may cause problems in communicating in real time. There is often a chance of misunderstanding because the slow response to the emails. This may derail the project. Communication failure is one of the prime concern for the failure of the project. In fact research studies show that over 10% of projects are delayed because of communication problems.

Early issues
Whenever two companies’ work in a project, early problems and issues will occur definately and offshore projects are of no difference. Both of them may find it difficult and discourage to work through them and this may finally lead to the failure of the offshore project.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/small-business-articles/failure-of-offshore-outsourcing-197647.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Mani Murthy is cofounder of Cybelink, a company specializes in small business financial and accounting outsourcing like Bookkeeping, Tax, Accounts Payable, Accounts Receivable, etc. For more info visit www.cybelink.com

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

How to Reduce your Accounting Expenses – Simple Effective Steps!
By: Mani Malarvannan | 08/08/2007 | Small Business
Even if you run a small business, overlooking accounting and proper bookkeeping may damage your business in the long run. In fact, you are always running the risk of court trials if you are not giving proper attention to accounting details. This is a common tendency among many small business owners. They do not want to spend money on accounting software or accounting professionals.

Small Business Tax Return Outsourcing - Different Benefits
By: Mani Malarvannan | 10/08/2007 | Small Business
By carefully choosing a qualified outsource vendor small businesses can benefit from outsourcing their tax return preparations. Here tips are given how to benefit from them.

Small Business Outsourcing and Cultural Differences
By: MAni Murthy | 13/08/2007 | Small Business
The facts that a small business is facing due to cultural difference with outsource service providers especially in account off shoring are pointed out here one by one and how we can overcome it is revealed out here.

How Small Businesses Can Manage Offshore Outsourcing
By: Mani Malarvannan | 31/08/2007 | Small Business
BPO can help small business in reducing the cost thus increases the productivity and efficiency by which small business can expand their core business. By outsourcing their business processes, the company is free to concentrate on its area of expertise and leave processes such as accounting, book keeping and auditing to the professionals.

Offshore Accounting Bpo - Myths and Realities
By: Mani Malarvannan | 10/09/2007 | Advice
Though there is some myth present but still reality prevails over the myth

Small Business Financial & Accounting (f&a) Offshore Outsourcing Cost
By: Mani Malarvannan | 05/10/2007 | Small Business
Often small businesses will consider only the cost paid to the offshore vendor in their ROI analysis when considering offshore vendors for their financial and accounting work. But there several other one time and monthly costs they need to consider in their total cost calculations. This article explores what are all the different costs small businesses must consider in their Total Cost Analysis so that they can estimate the overall ROI of their offshore engagement.

Can Small Business Company Maintain Their Paper Based Invoice and Bill?
By: Mani Malarvannan | 09/07/2007 | Small Business
Cost of the account data capture software is the prime reason small business not liking it in their accounting departments. What can be done!

How to Find a Good Cpa
By: Mani Malarvannan | 09/08/2007 | Small Business
Business handling whether it is big or small is always the important part in the growth and prospects of the company. So a efficient CPAs must be hired who can handle the Complex Financial problem properly.

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:
Powered by Yedda 

Latest Small Business Articles

Google Adsense : an Introduction
By: upinder singh negi2 | 18/07/2008
For many people, Google's Adsense publishing program is responsible for their very first taste of an online income. It may be pennies and cents but that first time you look in your account and see a credit is an exciting moment.

How to Improve Business Signs Through Digital Printing
By: Joel Owens | 17/07/2008
Business signs have never been easier to do. Thanks to the advancement of technology, including the development of digital printing. This is the time when you have to exhaust the available resources around you and maximize their potentials to work to your advantage.

Profits of Google Adsense
By: upinder singh negi2 | 17/07/2008
Are you a webmaster who needs funds to keep your website running? Or is your website the only way for you to earn income? Whichever you are, for as long as you are a webmaster or a web publisher and you need cash, affiliate marketing may work well for you.

How You Do Internet Business
By: upinder singh negi2 | 17/07/2008
Internet business mastery is something that can be learned from a mentor. The problem with most of us is we think we know everything by browsing the net and try to do something different than what others do.

Journey of Google Adsense
By: upinder singh negi2 | 17/07/2008
As a blogger, I started creating websites that I found personally interesting to me. I found articles that were fun and interesting and posted them for people to read. After all.. people create blogs so they can share their feelings and aspirations.

Memorial Jewelry: Having Your Departed Loved One Close at Heart Through an Urn Necklace
By: sumeetha Gowda | 17/07/2008
There is now a way to have your departed loved one close to you everyday, thanks to the concept of memorial jewelry. Cremation jewelry, remembrance jewelry, keepsake necklace - whatever everyone else calls it, it practically refers to the same thing. It is a piece of jewelry that holds a small portion of your loved one's cremated remains.

Cremation Urns - Preserving the Memory of Your Loved One Forever
By: sumeetha Gowda | 17/07/2008
Many people who have chosen to cremate their loved one who passed away make the mistake of taking the cremation urns for granted. It is very important to remember that a cremation urn is more than just an ordinary container. It is a container which contains the ashes of your loved one - of what has remained after he or she has gone. It will keep and hold the memory of your loved one alive not only for this lifetime but for many lifetimes after yours.

5 Most Important Point When Placing Google Adsense
By: Praveen Kumarii | 17/07/2008
I have been adding Google Adsense to my websites for a couple of years now with great success. It's amazing how adsense earnings can turn into another significant monthly income stream with little effort on your part.

More from MAni Murthy

Small Business Outsourcing and Cultural Differences
By: MAni Murthy | 13/08/2007 | Small Business
The facts that a small business is facing due to cultural difference with outsource service providers especially in account off shoring are pointed out here one by one and how we can overcome it is revealed out here.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below