A LONG LIST OF CHALLENGES FACES CEOS WHEN MAKING OUTSOURCING DECISIONS

• Service architecture. Pitfalls include selecting the wrong process, choosing an inappropriate location, engaging a vendor with insufficient capacity, and having a poor quality in-house team. In addition, the difficulty of splitting processes – delineating service boundaries and managing onsite and offsite teams – is a major challenge
   
  
• Service quality. Difficulties emerge from particular vendors' infrastructures, a poor onshore management team (resulting in loss of control of processes), and the lack of well-defined performance metrics and methodologies for ongoing optimization
   
  
• Contracting, negotiating. Among the traps are inflexibility in contracts, looseness in SLA * definitions, and a sharing of benefits biased to the vendor
   
  
• Personnel issues. Problems can arise regarding offshore management, onshore motivation levels, and the offshore/onshore interface (ensuring culturally sensitive and effective communication)
   
  
• Migration and transition. Insufficient knowledge transfer and poor talent of the migration team can be pitfalls