Success of Offshore Relationships: Engineering team structures

According to a recent NASSCOM-McKinsey report, the top reasons of unsuccessful off-shoring include: Inadequate preparedness and execution by client, Low onsite team morale and support, Onshore-offshore coordination and Miscommunication and cultural issues. The structure of the offshore team has a bearing on each of these. This paper compares two offshore structuring models, one being, organizing exactly like the client team that is off-shoring and the other, structuring the team a matrix structure. Managers are constrained in the selection of an appropriate model due to a number of reasons. Considering the changing market dynamics in this industry, execution efficiency has to be improved which will require best utilization of competencies and alignment of global delivery teams. Thus it becomes very important for managers to consider various alternatives and try out structures that will let them make best use of their resources