| Earlier several offshore projects failed for various | | | | Government Regulations |
| reasons. But now all of them have learned from their | | | | Legal bonding of both countries need to be kept in |
| mistakes to sharpen their skills in offshore vendor | | | | mind before starting of a projects. |
| selection, project management, project execution and | | | | Outsourcing Service Provider sometimes fail |
| now succeeding in their offshore projects. Following | | | | Though this may occur very rarely but if the vendors |
| are some the reasons you should know for offshore | | | | can’t give quality work then project may fail |
| projects failure and plan before you start it. | | | | drastically. |
| Scope of Project was unclear | | | | Cultural Differences |
| Detail about the goals, vision and scope of the project | | | | Since different culture people work in the offshore |
| must be made clear to the offshore vendor by the | | | | vendor’s team so idea in a problem varies from |
| outsourcing company. Otherwise problem may occur | | | | person to person which may misleads to the project. In |
| in understanding the project by the vendors and they | | | | fact majority of businesses that offshore IT and BPO |
| can do different thing than what is asked to do. | | | | projects quote cultural differences to be the primary |
| Cost should not be the only criteria for project. | | | | problem they face in offshore projects. |
| Often outsourcing to the lowest bidder may not be the | | | | Cost of Overseeing the Project |
| right choice because that may reduce the quality of | | | | The quality and performance of the offshore service |
| work. So reducing the cost should not be the prime | | | | provider must be checked by outsourcing business |
| concern. It may hamper in the project and you may | | | | They must also check the attention and time |
| have to spend more money to finish it | | | | employee spending for the project. |
| Timeline and Delivery | | | | Communication Problems |
| Proper delivery time and timeline should be given else | | | | Different time zone from the client may cause |
| again there will be a chance to misunderstanding | | | | problems in communicating in real time. There is often |
| between the companies. | | | | a chance of misunderstanding because the slow |
| Hidden Costs | | | | response to the emails. This may derail the project. |
| Change in technology may lead to increased costs of | | | | Communication failure is one of the prime concern for |
| the business. This is one of the major hidden cost that | | | | the failure of the project. In fact research studies show |
| the company face. This cost are not shown at the | | | | that over 10% of projects are delayed because of |
| start pf the project.. | | | | communication problems. |
| Retention of Key Personnel | | | | Early issues |
| Frequent turnover of key personnel in the outsourced | | | | Whenever two companies’ work in a project, early |
| team may lead to increase in time and effort which | | | | problems and issues will occur definately and offshore |
| increases the cost of the project. Thus the project can | | | | projects are of no difference. Both of them may find it |
| fail. This is true in India where the employee retention | | | | difficult and discourage to work through them and this |
| rate is less than 90%. | | | | may finally lead to the failure of the offshore project. |