Global Outsourcing Strategy - Why Does Strategy Matter in Global Outsourcing?

Often I am requested by my client companies to helpIn order to answer the question if offshoring continues
improve their offshore operations - they areto make sense, as part of your offshoring strategy,
experiencing various symptoms which are becoming allbusiness reasons for initially going offshore must be
too common in offshoring - high turnover of offshorespelled out. Despite what many people assume, it is
staff, costs beginning to escalate and seniornot always cost; cost is the most common reason,
management is not sure if offshoring makes sense.however. Other reasons are to have a beach head in
When I begin the engagement, one of the firsta growing economy like India or China to take
questions I ask client management is to help meadvantage of market opportunities, to have regional
understand their offshoring strategy. Quite often I get apresence to provide support to that part of the world
blank stare that says something like "Is that notmore easily (regardless of cost).
obvious?" When pressed, usually the answer is toIn addition to business reasons, you need to have a
reduce cost. Upon further analysis, I usually find thatclear set of rationale in place for other parts of the
over a period of time since offshoring effort beganoffshoring strategy (such as the offshoring business
there has been turnover of management and if theremodel, vision for the offshore operation, types of
was a vision up front no one can now articulate it in aprojects you plan to execute and so on). In addition,
cohesive manner and for sure not something theyou need to revisit global outsourcing strategy as your
whole management team would agree on.business strategy changes and evolves over time.