Early Days, Early Models

by Robert D. Austin

According to early reports from the offshoring front lines, there is much to complain about. In many cases, offshore arrangements do not work well. In all cases, they require a great deal of work. But we are in the early stages of this shift. The good news is that several possible offshore outsourcing models exist, not just one. Some of the most sensible arrangements blend onshore and offshore components as each makes sense, charging customers a blended hourly rate that is not as startling as absolute wage rate comparisons but that nonetheless represents a good combination of lower price and effectiveness. There are many questions and many dimensions along which we must gain expertise to become good at this. How should projects that take place in multiple geographical areas be divided into chunks and managed? How should interfaces with end users/customers be handled? The challenges are formidable, but just because we don't know the answers yet doesn't mean there won't be answers.

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Early Days, Early Models 4 August 2004