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Companies experience a drop in productivity and potential legal action from laid-off employees.
? The Cultural Cost – slow productivity can occur because of lack of experience, high staff turnover at offshore vendors and may lead to communication issues between the domestic company and the vendor.
? The Cost of Managing an Offshore Contract - Managing the actual offshore relationship is also a major additional cost as the ability to write clear specifications is also critical to achieving offshore savings. At the other end of the process is quality assurance (QA) testing.
Some of the potential risks of offshoring are as follows:
? Cost-Reduction Expectations of the internal organization has about how much the savings from offshore will be...
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