Unionization may increase in various employee groups

Employees may perceive that additional positions will be offshore

Effective communication from senior management

Emphasize commitment to avoiding involuntary job reductions

Vendor risk of lower service quality

Offshoring makes it difficult to measure and correct performance failures

Offshore country's legal system may make it difficult to seek prompt redress of contract issues

Select vendor with proven track record

Constantly monitor vendor performance

Include specific hiring and training criteria in contract

Put your employees in offshore center

Aggressive implementation deadline might compromise process quality

Vendor mishandling of the process might require more supervision

Develop and follow a realistic time line

Prioritize and defer noncritical initiatives to later period

Utilize temporary resources to support implementation and transition

Revenues may be lost due to customer frustration with offshore providers

Technology improvements might increase efficiencies resulting in unrecovered sunk costs

U.S. employee productivity may fall due to low employee morale

Select vendor with proven performance record

Include ramp-down and exit clauses in the contract

Effective communication from senior management

Geopolitical events may disrupt offshore operations

Vendor may cease operations due to local strikes

Vendor may cease operations due to financial problems

Build and maintain an effective exit strategy

Follow a multivendor sourcing strategy to mitigate risk

Negotiate sufficient financial recourse into the contract in the event of business continuity problems

Select vendor with established client base and sound financials