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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.