WSJ has a very good report by Phanish Puranam and Kannan Srikanth of London School of Business that describes Seven Myths About Outsourcing (WSJ.com subscription required) and how to address those. The video interview above talks in brief about some.
The essence of the report is that outsourcing and offshoring are highly collaborative engagements where both parties set the right expectations and goals as well as measure the progress in a realistic manner. The report also states it is less likely that you will acheive success with your first attempt at offshoring.
Highly recommended reading for anyone interested in offshore outsourcing.
Making Offshore Engineering Pay Off is another related and interesting article by Anil Verma and Serge Lambermont of Delphi Corporation one of the leading auto parts supplier in US. They recommend a product and integration complexity matrix to determine the distribution of design and engineering work between offshore, nearshore and onsite.
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