Beyond Costs: Financial and Operational Risks
In their eagerness to offshore increasingly complex and complete processes and operations, many companies fail to consider all the potential risks or to recognize the requirements for long-term success. This piece explores a number of important economic and organizational factors that must be taken into account when initiating offshoring, ranging from a consideration of unexpected setup costs to how to decide on a location. Other concerns covered include the elements of a solid offshoring contract and managing the virtual enterprise created by the combination of onshore and offshore operations. This is the first report in The Conference Board series Thinking Offshoring Through: A Framework for Decision Makers.
- Determining the Bottom Line
- Deciding on a Pricing Framework
- Uncovering the hidden costs
- Implementing Offshore Operations
- Setting the Stage
- Making the Move
- Lists common operational mistakes in offshoring
- Cautionary tale of how NOT to offshore your operation.
- An exit strategy plan.
- The pros and cons of three key service delivery methods.