Another important consideration for outsourcing is domain competency. For example, if 95% of your product orders are going to be handled by an outsourcer, they'd better know order management inside out. Or, if 80% of a bank's application development is going to be done by an outsourcing company, the company better be fluent in regulatory compliance requirements for banking industry.

Also, when outsourcing to destinations across the globe was in its infancy, basic technological, language and cultural literacy was sufficient. But these days it is also important that the outsourcing destination not only be good at basic skills and project management but also have enough competency to act as advisors to the relevant business function. In fact, as execution becomes commoditized, this advisory capability is becoming the differentiator among countries and companies.

Some of these ideas have been detailed out further at: http://www.infosysblogs.com/thinkflat/global_sourcing/

Another important consideration for outsourcing is domain competency. For example, if 95% of your company's revenue is going to be handled by an outsourcer, they'd better know order management inside out. Or, if 80% of a bank's application development is going to be done by an outsourcing company, the company better be fluent in regulatory compliance requirements for banking industry.

Also, when outsourcing to destinations across the globe was in its infancy, basic technological, language and cultural literacy was sufficient. But these days it is also important that the outsourcing destination not only be good at basic skills and project management but also have enough competency to act as advisors to the relevant business function. In fact, as execution becomes commoditized, this advisory capability is becoming the differentiator among countries and companies.

Some of these ideas have been detailed out further at: http://www.infosysblogs.com/thinkflat/global_sourcing/