When the process of formally charging an offshore or outsourcer with the contractual obligations, the host organization has to clearly identify what the responsibilities and expectations of onshore and offshore communication links and interactions. Such activities ensure that clearly defined service levels for each functional area are outlined in the detail that will allow for better monitoring and updates among all locations.
Published in Chapter:
Offshoring IT
Copyright: © 2018
|Pages: 14
DOI: 10.4018/978-1-5225-2255-3.ch476
Abstract
Offshore outsourcing basically describes the practice of contracting to outside vendors in another country, especially in cases where the client company has no direct ownership. This operational strategy of low-cost, global expansion, and increased capability of vendors in India, China, the Philippines, South Korea, has opened great number of avenues of traditional organizational functions of IT. Such functions as software development, call centers, and accounting are typically offshored. Since the late 1990s, offshore outsourcing has included more sophisticated finance and accounting functions, beyond that of simple data input and transactions. Offshore finance and accounting outsourcing is especially becoming an attractive option for many companies. The obvious benefits are gaining access to scarce and valuable skills, cutting costs, and domestic and global achieving competitiveness. However, there are risks as well. A relatively balanced approach of benefits and risks are discussed in this chapter.