Execution is Everything:The Keys to Offshoring Success

One thing about offshoring is certain: If an issue arises offshore, you can bet it will get five to 10 times more negative attention than if it had occurred onshore. The mainstream media deliver offshoring headlines through a very large megaphone.

Nevertheless, companies continue to aggressively pursue offshoring—moving selected functions or processes to places in the world where they can be conducted at lower cost, either by third parties (outsourcing) or by their own, newly built (captive) capabilities. Why? Because their leaders know the wider realities of offshoring. They know that although it may be a risky game, offshoring also offers potentially great rewards: It helps companies compete in a global age, creates value for their shareholders, and improves their operational performance.