
“…not a single activity is immune … [ to offshore ].”
Many industries linked to online services consider offshoring not just an option but a necessity. Some call it “Offshore or Die”.
Resisting offshoring can, at times, be a matter of survival. One example is Zenith Electronics, one of America’s largest television manufacturers. This company resisted offshoring for decades–while slowly shrinking–until it disappeared completely.
For such companies, success stems from innovation and innovative abilities come from talent- their most creative and brilliant employees, researchers and brains.
In the past, such companies from developed nations would tap foreign talent from other developed countries. Later, this focus shifted towards developing countries like India, Pakistan, Israel etc.ย
Offshoring Information Technology: Sourcing and Outsourcing,
Erran Carmel, โPaul Tjia
Outsourcing will require that you share your sensitive financial data with an external provider. This can expose the business to data breaches.
Outsourcing can lead to diminishing control over day-to-day accounting operations because the processes are managed externally.
Missing priority for lack of oversight can affect the timeliness of financial reports, which has implications for strategy and decision-making.
It is probable that the team you outsource lacks in-depth knowledge of the specific industry you are in. There may also be regulatory requirements that can lead to errors.
Moreover, frequent turnover in your outsourcing to team may affect the consistency and quality of the work.
Integrating outsourced accounting services with in-house systems or software may be time-consuming. Such problems can lead to complexity and time waste.
In addition, compatibility issues with technology processes or reporting formats can obstruct smooth operations.
Standardized development processes that are:
Outsourcing looks handy and promising, but there are so many hidden challenges that can surface once you get into the process. Offshoring also looks challenging, but it can have more rewards if you keep control over your off-shore places; also you can leverage manyfold, given the fact that covering such distances naturally has many benefits.