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Offshore outsourcing is without a doubt a part of globalization, and I’m sure it’s here to stay. For many companies outsourcing represents a real value that they are prepared to manage and maintain, but for many it represents a lot of headaches.

Here are a few reasons you should consider strengthening you local team rather than outsourcing:

Risk of confidentiality: Before hiring an outsourcing firm, do your homework. Make sure their references check out and that they have no previous history of leaking information. This is always a concern when outsourcing. Take the proper precautionary legal measures to avoid any misuse of your sensitive data. Better safe than sorry!

Lack of quality: This often happens when you choose a vendor that doesn’t have a proper development process or enough experience. Those who experience this often go for the “cheaper” outsourcing firms, which in turn can end up hurting you and costing you more money. Look through the vendor’s portfolio to see the type of work they do and how complex it is. This will give you a sense of their capabilities and experience.

Weak customer support: Service providers without good experience in managing outsourcing relationships may fail to deliver good customer care. If they are working for more companies than they can afford, you won’t get enough attention and the end result will be disappointing.

Hidden costs: Although outsourcing is known for cost-effectiveness, hidden costs may stem during the development period. These costs arise from unanticipated changes that demand some quick adjustments. Setting a clear outline of cost and potential extra charges upfront should be done before signing a contact.

Communication and cultural barriers: Lack of understanding the cultural differences between the company and outsourcing vendor may cause problems in communication. Set clear expectations for both parties in the beginning to decrease the chances of this happening.

Read the complete article here.