Best Practices for Selecting Onshore, Nearshore or Offshore Technology Services - Slide 5

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Ask questions about who comprises the ITO team. Sometimes ITO providers offer one or two customer-facing team members to woo you, but they push the actual work down to lower-skilled individuals. Don’t get stuck with a layered “team” full of marginal people when all you really need are a couple of highly skilled experts who can make an impact. Watch out for large-scale providers employing an up-sell strategy that could leave you with more than your company needs, wants or can afford.

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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