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  The basic objection made to offshore outsourcing is, "Communication problems are already rife within the same company, building and language. Imagine what may happen if the other team were living on the other side of the world, speaking another language, and having different business practices".
This is a legitimate concern, but it is a misleading one. Effectiveness of collaboration between two teams does not depend much on how close, physically and culturaly, the two groups are. It depends much more on how the relationship is set-up and managed.
In other words an offshore outsourcing relationship cannot be rushed in or improvised: it must be accurately "designed" and actively managed.

"Relationship design" follows a largely consolidated methodology whose steps are outlined below.
   
Business case definition
The case development ending point is a business plan containing the description of processes and solutions and the quantitative estimation and timing for investiment and cash flow.
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Proof of concepts
The proof of concepts is made through a pilot project involving one (or few) suppliers. Its aim is to check the soundness of the quantitative parameters used in business case development.
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Partner selection
Nunki maintains a data base of suppliers, services, experience, and known technical tools. The data base is the starting point for the initial screening.
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Service contract formulation
The contract must protect both parts, align their interests, and promote in practice, through adequate incentives, a "win-win" kind of relationship.
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Security management
In offshore outsourcing relationships "managing security" means "guaranteeing" two aspects: proprietary information non-disclosure and service continuity.
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Start-up and transition management
Transition must be managed. Paramount to this is to identify the person in charge, define his/her tasks and resources and measure his/her results.
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Relationship management
Companies and organisations are often unprepared to managing an offshore outsourcing contract. Yet to yield the sought-after results a relationship must be actively managed.
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  Offshore Outsourcing I Designing A Relationship I Carrying Out The Promises I Engineering Services From India
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