Which of the following is the LEAST appropriate way to engage in offsh

QUESTION

Which of the following is the LEAST appropriate way to engage in offshoring operations?

A) Choose offshoring companies and suppliers in which candidates meet a complete set of requirements.
B) Commit to consistently effective communication with offshore suppliers.
C) Collaborate with chosen suppliers so as to develop their competencies.
D) Give offshore suppliers as much autonomy as possible in delivering their services.
E) Make expectations clear so that the offshore company does not jeopardize the firm’s reputation.

ANSWER

Answer: D
Explanation: D) Letting an offshore company run its business with as much autonomy as possible leads to a lack of accountability and an unpredictable relationship with the offshore company, greatly increasing the risk that the offshore company will not deliver the goods that the originating company expects. Choice A describes a selective approach to choosing a supplier, which is a sound strategy. Choice B is an appropriate expectation, since it is risky to take any assumption for granted when committing to have key services delivered by a company operating in a different culture. An originating firm has a vested interest in an offshore supplier’s competency, so Choice C describes an appropriate strategy to help ensure success in the business relationship. Choice E describes an appropriate strategy to keep the offshore company accountable to the originating firm’s goals.