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Home » You Know What's the Matter with Your Offshoring Strategy? It Doesn't Recognize Everything That Matters.

You Know What's the Matter with Your Offshoring Strategy? It Doesn't Recognize Everything That Matters.

September 28, 2010
CIO Insight

For one thing, total cost of ownership matters more than raw labor rates. Time zone matters. "Follow the sun" models can work-but they're not right for everything. Culture matters. Work cultures vary. Language matters. If you can't communicate effectively, the work isn't going to be done correctly. Capability matters. It's critical that your partners understand the business drivers of your region in order to grasp why your organization operates the way it does. Capacity matters. Can your partners cope with your company's growth and their own increase in volume? Diversity matters. When you factor in geopolitical, economic, judicial, operational and financial risks, you'll understand that you shouldn't be in a single market or even a single geography. Process matters. It's more work to manage multiple relationships than it is to manage one, unless you have sound processes and standards in place to keep the business running smoothly.

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    KEYWORDS Business Strategy Alignment Food and Beverage Global Supply Chain Management Quality & Metrics Regulation & Compliance SC Security & Risk Mgmt Supply Chain Analysis & Consulting
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