Offshoring 101: How to minimize the risk to your career

Computerworld - The debate surrounding offshoring may have cooled somewhat in recent months, but many IT professionals in the U.S. remain concerned about losing their jobs to employees overseas. Little wonder, considering that a white paper released late last year by Ventoro, an offshoring research and consulting firm, showed that 95% of Fortune 1,000 firms currently have an offshore strategy in place. The report also indicated that a sizable number of companies are planning to explore offshore options or increase spending in this area.
However, even if you've begun to hear rumblings within your organization about moving some IT operations overseas, a number of factors may prevent your firm from doing so:

• Unconfirmed benefits. The primary motivation for utilizing offshore options is the belief that relocating certain IT functions to India, China, Russia and other nations where labor costs are dramatically reduced will save money. But more than half of the organizations polled by Ventoro reported no savings -- and even increased expenses -- as a result of offshoring.


• Security concerns. Threats to a company's confidential data, especially in light of global security and identity-theft concerns, mean that firms are extremely cautious about who has access to their systems. For this reason, many, particularly those in government, health care and financial fields, have not pursued outsourcing in order to maintain direct control over sensitive information.


• Quality control. With workers half a world away, companies that offshore may find it difficult to ensure quality service and product development.


• Managing resources. Moving IT operations overseas is neither simple nor inexpensive. Planning often takes months, if not years, and involves complex coordination within the company and among outside vendors. In addition, communications can be challenging as a result of time, language and cultural differences. For small businesses, the time and resource investment is often not worth potential cost savings.