The Offshore Nation: Strategies for Success in Global Outsourcing and Offshoring Review

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The Offshore Nation: Strategies for Success in Global Outsourcing and Offshoring ReviewOffshore Nation provides something most monoliths on offshore outsourcing are missing: the authors provide informed guidance on both the strategic decisions as well as the implementation challenges to successfully exploit global sourcing. The authors share their substantial data and case histories to illuminate each prescription. They address the entire process of offshoring, including country selection, customer models, supplier models, and most importantly, governance models. In particular, they describe the six areas of governance customers need to manage to ensure success: performance, financial, contract, relationship, resource, and operations. My favorite chapter is the total cost of offshoring. Too often, CEOs are mesmerized by the labor cost differentials, but our own research has found that the transaction costs of going offshore can represent 62% of contract value. The authors provide a total costing model of offshore, of which they found that wages are only 42% to 46% of the total costs of offshoring.
I recommend this book to any C-level executive, as well as middle managers charged with delivering global sourcing of business and IT services. My MBA students are reading this book for class and just love it. They read Friedman's The World is Flat, which provides an exciting, yet overly-optimistic view of global sourcing. Offshore Nation is a great companion read because it tempers Friedman's unbridled enthusiasm with the reality of delivery. Yes, global sourcing can delivery on its promises, but it takes a tremendous amount of detailed management to make it work.
--Dr. Mary Lacity
Professor of IS at University of Missouri St. Louis and author of six books and over 50 papers on outsourcing.
The Offshore Nation: Strategies for Success in Global Outsourcing and Offshoring Overview

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