Outsourcing is not new, but it can be more complicated to evaluate and implement offshore. The functions and processes that lend themselves to outsourcing for technology companies include: software development, application hosting, data centres, network management, and back office functions. The promise of immediate cost savings can be a major incentive to explore overseas outsourcing options. But some companies fail to understand the practical considerations and risks.
The issues that eat offshoring cost savings include extra overhead, the threat of IP slippage, and poor communications. The most successful companies start offshoring low-value, noncore functions. Once they understand the process and cost model required to be effective and efficient, they can make educated outsourcing/offshoring decisions for other areas.
How PricewaterhouseCoopers can help you
PwC works with clients to create the most effective and efficient outsourcing solution – whether offshored or not. Our risk and financial effectiveness assessments, human resource services tax structuring, control reviews, and overall operational advisory services work in tandem to reduce costs and meet business objectives.
