How to choose the right offshore supplier ?

• Outsourcing is a strategic option so supplier stability is vital
• Partnership relationships are important to drive enhanced value
• For partnerships cultural fit is as important as technical expertise
• Risk sharing becoming a more common option in many outsourcing contracts
• Developing innovative solutions to add value to the business

Problems with offshore partners

• Difficulty managing the relationship with the supplier
• Loss of specialist IT knowledge internally
• Loss of control of IT infrastructure or of specific functions
• Complexity of managing Service Level Agreements
• Lack of contract flexibility
• Changes in personnel at outsourcing supplier
• Cost over-runsProblems interfacing with other in-house IT systems
• Charging pressures on outsourcing vendors
• Lack of innovation on part of outsourcing supplier
• Missed targets

Ranked in order of perceived importance

• High
• Medium
• Low