Offshoring considerations - balancing cost and quality in transition

This model highlights what is considered by some to be a key focus of the transition to an offshore delivery model. It says:

Whilst offshoring reduces cost over time, there is inevitably an initial ramp up period that has the risk of creating quality issues and delays that counteract sales or services and hence impact profitability or cashflow. The knowledge transfer required to ensure quality and timeliness requires onshore delivery capability, sometimes perceived as high cost. This investment in the present must be balanced against the potential losses and gains of the future. The knowledge transfer and the management of this transition to a fully offshore model must be the initial focus of attention.