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Oracle offshoring is a failure

Oracle Tips by Burleson Consulting

Offshoring Oracle projects have proven to be a major failure for many US corporations.  Plagued by huge communications issues, poorly-trained developers and huge cost over-runs, many companies find that their offshoring not only fails to save them money, but sometimes fails to deliver the project at all. 

Compounding the issue is the lack of legal recourse and the differences in Indian laws, which can leave US companies with millions of dollars in unrecoverable losses. 

 

USA based Oracle Remote DBA support offers a safer and more cost-effective option.

 

While the corporations say that they must reduce costs to remain competitive in a global market, there has been a backlash as offshoring has failed as Oracle jobs return to the USA.

 

Gartner claims that 2004 will see the first major offshoring failure that will lead to a company taking its operations back onshore.

 

We are also seeing that the cost savings promised by offshoring are not as great as promised:

 

Although offshoring has promised big savings for U.S. companies, it hardly is delivering for many, according to a recent study commissioned by Alpharetta-based Aelera Corp.

 

The survey shows the average company last year saved only 20 percent by exporting jobs overseas -- up to 20 percent less than expected. And nearly 10 percent of the companies in the study actually lost money.

 

Citing problems such as cultural issues, unforeseen expenses, complex logistics, loose security, poor work quality and the subsequent decline in American employees' morale, about 55 percent of the polled companies' executives said they are considering "reshoring," or bringing the projects back to the United States.

 

However, that doesn't mean those companies desire to have all the projects done in-house. According to the study, 20 percent of the polled executives said they were "very likely" to "homeshore," or to outsource domestically.

 
If you like Oracle tuning, you might enjoy my book "Oracle Tuning: The Definitive Reference", with 950 pages of tuning tips and scripts. 

You can buy it direct from the publisher for 30%-off and get instant access to the code depot of Oracle tuning scripts.


 

 

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