Myths about Offshore Outsourcing

Deciding to outsource is rarely easy, and it is almost certain that the transition will create uncertainty, controversy, and even active resistance [Kelly01].

The fear of losing control is the most typical objection to outsourcing, commonly reflected in thoughts like "if I want it done right, I'd better do it myself." [Kelly01] points out that in fact, outsourcing increases the ability to manage and control vital business processes. Outsourcing is based on contracts, schedules, and milestones that specify key objectives and guarantee performance.

Another common myth about outsourcing is that people usually think of it as being financially uncertain. Concerns about upfront costs and ongoing service fees are commonly present; however, with an appropriately written contract, the financial benefits become clear. Structure the contract by milestones and periodical reviews issuing payments on an approval basis. This eliminates all uncertainty about hidden costs.