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Location, Location, Location! Best Practices for Selecting Onshore, Nearshore or Offshore Technology Services
An original survey of US-based technology professionals conducted by Fairway Technologies revealed that smaller companies are more likely to use only onshore information technology outsourcing (ITO) providers and larger firms are more likely to enlist a blend of service providers, including more offshore than smaller firms. The survey also revealed the top three ITO needs were custom software development, analytics/business intelligence and systems integration. Research shows the largest volume of offshore ITO business is serviced from India, with China and Russia far behind in second and third places.
Controlling and reducing costs are primary drivers of outsourcing technology services. Savings are realized by not only lowering overhead and infrastructure expenses, but also capitalizing on specialized expertise to speed time to market and avoid project delays. Before deciding whether to hire an onshore, nearshore or offshore ITO provider, decision makers should first consider the benefits and risks of each model and how those map to their business requirements.
This white paper provides an overview of ITO, presents benefit and risk assessments of onshore, nearshore and offshore ITO, and offers best practices to assist in selecting an ITO provider. The analysis presented in this paper is based on research compiled from published literature as well as interviews and surveys of technology professionals possessing ITO experience. Continue reading to learn more about these best practices for selecting onshore, offshore, and nearshore technology services.