White Papers

The Hidden Costs of Offshore Outsourcing

• Tags:
• outsourcing,
• money,
• offshore,
• saves

Overview EXECUTIVE SUMMARY
As companies struggle to justify or evaluate their offshore outsourcing efforts, they try to identify the hidden costs associated with offshore outsourcing. In the past, some companies looked at the labor cost differentials and called this their savings. Unfortunately, there are many other costs that have to be included in an accurate cost-benefit analysis. Some of these costs may be soft, such as productivity loss related to employee morale issues, while others are hard costs like project management resources. For companies to determine whether or not offshore outsourcing truly saves them money and how much money offshore outsourcing saves them, they must factor in all hard and soft costs associated with offshore outsourcing.

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