Offshoring (Offshore Outsourcing) Essay Example | Topics and Well Written Essays - 250 words

Offshoring (Offshore Outsourcing) - Essay Example Offshoring is gaining popularity because it allows organization to reduce their costs, develop an extended market reach, and improve efficiency and productivity of work at the same time (Masciarelli, 2011). Successfully implementing offshoring is a challenging task. It requires careful planning and monitoring. The first step is to plan which functions to outsource. This includes planning of critical functions, skill transfer and scalability. The next step is to evaluate a cost-benefit analysis. This is done to evaluate whether the benefits of the operation will outweigh the costs. Only is the benefits outweigh the costs, the next step should be taken. The next step is developing a project management team which would be responsible for the offshoring process. This includes the planning process, setting the timetable and hiring the necessary personnel for the job (Neelankavil and Rai, 2009). According to Ilan (2011) successful offshoring is dependent on finding the right model for opening up business operations in a different country. The most likely destination for offshoring activities today is China which offers a variety of incentives to businesses around the world including cheap labor and good