Offshoring: What Can Go Wrong?

  • Authors:
  • Norman Matloff

  • Affiliations:
  • University of California at Davis

  • Venue:
  • IT Professional
  • Year:
  • 2005

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Abstract

Distance, cultural differences, inexperienced programmers, and other obstacles associated with offshoring frequently burden companies more than they benefit them. In this article, the author discusses the myriad problems associated with outsourcing, including quality gaps, lack of face time, and various language and cultural barriers. The article argues that, contrary to popular belief, there are no guarantees of innovation or increased profitability when a company decides to offshore. In fact, offshoring can actually have to opposite effect, lowering employee moral and, in some cases, producing an increase in costs.