While you pay sellers at sea and much less than they could afford a U.S. seller, some staff members complained that productivity in the sea actually low, only 2 or 3 people at sea, doing the same work previously performed by an experienced person in the United States. And that's not all offshoring involves additional costs for travel, communication, and duplication of equipment, only the name of some expenses. At least some of its employees may involve or even proclaim aloud that outsourcing does not save money, after all, and moving some functionality was a bad idea. That move may have saved money initially not may be doing more. After all, labor costs at sea are increasing.
To understand the total cost of relocation, it should be into account the intangible costs as well. If, for example, your management team must work nights and come to work early in the morning to manage a resource high seas, their perception of who benefits and who is wrong becomes more personal. While for a temporary period, staff may be willing to do what citizens to be good business, you can not ignore the human cost here in the U.S. of relocation. To get to the actual costs of relocation, it is necessary develop an objective view of all aspects of costs including intangible assets and any difference in productivity abroad.
About the Author:
Do you want to learn more about key ingredients for global outsourcing success? To down load my free report Global Outsourcing: 6 Key Strategies to Achieve Success click here.
M. M. Sathyanarayan is President of Global Development Consulting, Inc., an advisory firm focused on global outsourcing. He led the pioneering effort in global outsourcing at HP/Tandem beginning in early 90s and was Founder/CEO of a startup. He is now internationally recognized consultant, author, trainer and offshoring coach. He has helped a number of companies improve their performance by effectively leveraging global resources.
Article Source: ArticlesBase.com – Offshoring Challenges: Myth Vs Reality of Offshoring Benefits
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