Are You Concerned With Security in Your Offshore Outsourcing Operations?

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Area Development Online Research Desk (12-15-2008)

PDF: Are You Concerned With Security in Your Offshore Outsourcing Operations?

Historically, executives have moved technology and business process work offshore with a goal of controlling cost. This tsunami has grown over the last few years with a wider range of country locations being considered ranging from A to Z, from Australia to Zimbabwe. Each location clearly has unique issues that in many ways help fuel the lower cost basis of that country. Greater stability normally has greater cost, with the correlation holding true as instability increases. Seemingly, the choices were easier just a short while ago when the real as well as the perceived security risks of a number of locations were consistent. With the recent tragic events in Mumbai, a flare up in the Philippines and possible changes in China, a rigorous assessment of a “correct location” prior to signing a contract has become more important. India was clearly the cheapest location with the best risk adjusted cost of getting work done. India remains the largest lowest-cost choice. =But are there other options? How do the other locations compare to India? What are your options as an executive? These are good questions to evaluate.

Your Options on Where to Locate are Evolving
Each decision should be made based on a total evaluation unique to your specific business and risk profile. The following is an overview of a select group of countries that could be considered in choosing a location for your back office activities either to an outsourced provider or for your own captive support center. Each location is presented in summary and no decision should be based on this information alone.

PDF: Are You Concerned With Security in Your Offshore Outsourcing Operations?

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