Challenges When Integrating Nearshore With Offshore Outsourcing

Sweden Chapter

Introduction
Global corporations are increasingly using offshore resources for gaining a cost-effective productivity boost regarding their IT investments.  Offshoring is no longer a term that is alien to project managers working in large, global companies—and one can roughly state that the initial phases of offshoring are long over for international companies. Offshoring can either be achieved by establishing subsidiaries offshore or utilizing an external offshore supplier, called offshore outsourcing.

Although a global corporation might have a lot of experience in offshore outsourcing, it doesn’t necessarily mean the entire organization has the same amount of experience working with offshore resources. As an external project manager, you might be asked to run a project with the help of offshore outsourcing within a corporation that already has an established offshore delivery model. The first assumption you might make during such circumstances is that since the enterprise already has an established delivery model, there should be few surprises down the road. This assumption might, however, be very risky because within the organization there might be a heterogeneous degree of maturity with regard to offshore outsourcing.

One example of such a situation is when you try to establish collaboration between your nearshore development subsidiary and your

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