How to Succeed in Offshoring - and Where

Outsourcing guru Mary Lacity studied global companies that had succeeded (and failed) in international outsourcing deals.

Outsourcing business processes or entire departments to overseas companies has become so common a tactic that senior managers more often have to justify why they're not doing it than why they are.

But the common wisdom about offshoring is often wrong. It's not a panacea for high-cost corporate processes; it's not a fire-and-forget solution to functions you don't want to manage; and it's not a uniform experience.

How much bang you get for your buck depends on picking the right processes, the right location, the right service provider and the right contract.

Carefully managed outsourcing arrangements are rarely a complete bust, according to Mary Lacity, a professor of information systems at the University of Missouri-St. Louis, who is one of the leading

experts on international outsourcing.

In a study of more than 25 companies, she identified the strategies that were most successful and alterations they made to accommodate conditions in different countries.

Our own research shows that regions have their own distinct characteristics, which we map out for you in an accompanying graphic. Download the Global Outsourcing Map below to have a quick look at the world situation. Download the report to get a more extensive review.

A Q&A with Mary Lacity: Finding Success in Offshoring

This article was originally published on 03-22-2005
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