Return on Investment (ROI) The Cost vs. Value Equation for Offshore Software and Technology Projects

When you engage an offshore service provider, you must predict measurable results and achievements in order to justify the cost of acquiring the service. Ideally, the value of the service should exceed, or at the very least, be equal to, the monetary investment. If the value of a service or product is particularly unique, the organization may be willing to pay more for that service or product. This document includes some recommended value factors for your consideration. We have also included two approaches to analyze vendor value. One is a ‘risk’ assessment and the other is a ‘weighted value’ assessment. You may use one of these two methodologies to calculate the value of a vendor service offering versus the quoted cost or fee.