Offshoring in the IT industry is by no means a new trend, however it is still very much ongoing and even developing further.
Setting up an oil platform has a lot in common with IT offshoring:
- An oil rig is not built anywhere in the sea hoping to find oil - IT offshoring cannot be blindly offshored to any low cost country.
- Appropriate communication routines, governance and processes need to be designed between the company and the offshore rig – communication and interaction need to be planned when offshoring IT.
A shift in the delivery model from pure staff augmentation to managed services and outsourcing of entire business processes leads to higher savings, but also increases risks of compliance or security issues and thus requiring a careful transformation.
Often the offshore journey fails to meet expectations or to reach breakeven in time. Getting advice from an experienced outsourcer or an independent advisor often is a good choice, but no guarantee for success, as offshoring is a complex endeavor in which internal as well as external factors create a dynamic environment highly individual for each situation.