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Is Off-Shore Outsourcing A “Bane” Or A “Boon”?

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An article in CIOInsight, http://www.cioinsight.com/article2/0,3959,940251,00.asp Quoted some interesting survey results from companies that have gone offshore.

“Of those companies that have gone offshore, 88 percent said they had gotten better “value for the money” with U.S. firms. That isn’t too surprising.

What is surprising, and what has to be worrying U.S. IT services firms, are some other results of the survey: – 71 percent said the “quality of the deliverable” was better than U.S. firms provided, and – 67 percent said “on-time delivery” was better. In other words, India’s IT services firms are outperforming their U.S. counterparts in three key areas: they’re producing better products and services; they’re doing it faster; and they’re charging less. That’s good news for CIOs, but bad news for U.S. firms.” – I know that there has been and continues to be “heated” discussions and debates about off-shore outsourcing in many forums.

Is off-shore outsourcing a “bane” or a “boon” for Virtual Consulting?

IMHO, the fact that at least some of these companies are able to successfully employ off-shore resources to produce quality products in an cost effective and timely manner, is proof tha Virtual Consulting really works!

Wouldn’t you agree?

In other related articles, they specifically note that India is experiencing a boom due to IT outsourcing:

Ref: “Growing trend toward IT outsourcing is a boon for India By Scott Leith sle-@ajc.com The Atlanta Journal-Constitution Sunday, May 4, 2003″

Don’t you think that as companies see that they are able to allow work to be performed remotely / virtually, even half way around the world in India, that this type of Virtual Consulting is not only viable, but beneficial?

Granted I have also seen and heard of companies of all sizes and (supposed) levels of maturity (SEI CMM) fail when trying to outsource projects. But, IMHO, the cases I have heard about appear to be attributed to a lack of understanding of how to plan and/or manage these types of outsources / virtual / remote projects.

What have you heard about the success and/or failures of companies to successfully outsource projects? and why did they succeed or fail?

What do you see as the Risks, Issues, Opportunities, and/or Rewards of off-shore outsourcing relative to Virtual Consulting?

How might we turn this ongoing trend to our mutual benefit?

Again, IMHO, I actually see this trend of off-shore outsourcing as an opportunity for Virtual Consultants / Consulting.

Just think, if companies believe that you can design, manage, test, etc. a product / project being developed remotely and possibly off-shore, than why can’t you also perform your consulting, design, management, testing, etc. tasks remotely / virtually relative to the physical location(s) of the company?

Further, doesn’t this lead us in the direction where the objectives are to use the best, highest quality, most cost effective and time efficient resources for a task / project no matter where in the world they are performing the work? Doesn’t this tell us that we are starting to really deal in a true “Global Economy”? And isn’t this what Virtual Consulting is all about?

You tell me?!

Michael S. DeVries is the Moderator of The
Virtual Consulting Discussion List
(http://www.TheVCF.com/vcdl.phtml) and Principal of The Virtual
Consulting Firm (http://www.TheVCF.com). Learn more about
Virtual Consulting and how to work from Wherever, Whenever by
subscribing to The Virtual Consulting Discussion List for FREE
and receive several FREE Gifts! at:
http://www.TheVCF.com/vcdl.phtml

Is Off-Shore Outsourcing A “Bane” Or A “Boon”?
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