The most common argument for outsourcing is cost savings. And in the face of a challenging economic climate, cost figures largely in the decision to outsource IT projects and business processes.
While cost-effectiveness is a huge deciding factor for offshoring, cheaper labour and service rates should not be the only measures of the possible financial success of a project. In fact, long-term benefits are extracted from the industry expertise of vendors that could make up for the investments in communication, time zone overlaps, and travel.
A human resources management expert, Dr John Sullivan, advises that metrics and measures should be identified right after selecting the vendor. A competitive business environment typically requires a higher return on investment.