Most experts don’t see an end to the offshoring trend, but with an estimated half of all offshoring operations falling short of expectations, companies considering sending their operations overseas have to consider the risks—not merely the rewards—of doing so. The findings come from a report, “Thinking Offshoring Through: A Framework for Decision Makers,” released by The Conference Board. The report reveals that unless corporate leaders address the full spectrum of offshoring challenges, underperformance will grow, leading to significant effects on corporate operations.

“Companies now need a comprehensive decision-making framework to help senior executives rationally and systematically assess the risks and rewards of offshoring,” says Ton Heijmen, senior advisor to The Conference Board on offshoring and outsourcing.

The report reveals that many companies that offshore operations suffer from poor project management, inadequate internal and external communications, and ill-conceived transition plans. Many companies focus on security risks and neglect others: damage to the company’s reputation, social responsibility, human capital, and regulatory and legal difficulties.

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