Best Practices for Selecting Onshore, Nearshore or Offshore Technology Services - Slide 11

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Strong communication and collaboration are vital for onshore, nearshore and offshore ITO. When offshoring or nearshoring, insist on having a local resource, sometimes called an engagement manager. This is an onsite representative of the offshore team whose job is to increase knowledge transfer, build social capital and serve as the project’s intermediary. If that isn’t possible, opt for English speakers on the offshore team. Both may be more expensive, but can prove worth the added price. The benefit of onshore ITO is having a local resource without the added expense of overseas travel or burden of translation problems.

In this slideshow, Fairway Technologies outlines 10 best practices to assist in selecting an information technology outsourcing (ITO) provider. Their analysis is based on research compiled from published literature as well as interviews and surveys of technology professionals possessing ITO experience.

An original survey of U.S.-based technology professionals conducted by Fairway Technologies revealed that smaller companies are more likely to use only onshore ITO providers and larger firms are more likely to enlist a blend of service providers, including more offshore than smaller firms. The survey also revealed that the top three ITO needs were custom software development, analytics/business intelligence and systems integration. Research shows the largest volume of offshore ITO business is serviced from India, with China and Russia far behind in second and third places.

Controlling and reducing costs are primary drivers of outsourcing technology services. Savings are realized by not only lowering overhead and infrastructure expenses, but also capitalizing on specialized expertise to speed time to market and avoid project delays. Before deciding whether to hire an onshore, nearshore or offshore ITO provider, decision makers should first consider the benefits and risks of each model and how those map to their business requirements.

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