The business case for offshore outsourcing continues to become stronger. Many companies are already benefiting from cost savings and are accelerating plans to push work offshore.

Following successful early trials, some companies are now moving hundreds of employee functions per quarter. As more executives consider this option, the IT organisation (ITO) is expected to support these initiatives quickly, securely, reliably, and inexpensively.

Meeting these demands is a challenge, but best practices are beginning to emerge. Effective planning for offshore outsourcing requires strong communication between the ITO and the business. Executive management should outline current and potential outsourcing opportunities to determine the infrastructure impact early in the planning stages, since infrastructure costs can have a substantial impact on profitability of the venture.

Because these initiatives frequently require high reliability, the best practice approach uses private network services rather than less reliable Internet-based virtual private networks (VPNs). Fortunately, international private leased circuit (IPLC) pricing will fall by 10% per year through 2005, making reliable inter-region connectivity increasingly affordable and the preferred connection method through 2006.

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