May 06, 2009, 11:53 AM — A recent article in CIO.com about the real costs of offshore outsourcing got me thinking. It's surprising that so many CIOs continue to enter into contracts with offshore outsourcers, despite evidence that shows the cost savings are often nonexistent.
I work for a Philadelphia-based software support company, and one of the most common questions customers ask our consultants is "Where are you located?" When our techs tell them we're in the Philly suburbs, the consistent reaction is surprise, then delight -- perhaps because the callers sense that maybe, just maybe, their issue will be solved today, and not after two hours of holding, spelling their name, rebooting, getting transferred, explaining their issue, holding again, explaining their issue again, and so on.
Choosing an offshore outsourcing partner for cost savings is short-sighted. It's like opting to buy a Hummer instead of a Prius because the dealer slashed the sticker price; sure, it's cheaper up front, but the fuel, maintenance and environmental costs are much higher with a Hummer over the life of the contract.
What has your experience been with offshore outsourcing? Tell me in an e-mail.