1. Far Less Savings than Expected
One of the biggest risks associated with offshore outsourcing of CAD conversion involves the inflated expectations that the internal organization has about how much the savings from offshore CAD conversion outsourcing will be. Unfortunately, many executives assume that outsourced labor will yield savings comparable to a person-to-person comparison (e.g., a full-time equivalent in India will cost 40% less) without regard for the hidden costs and added internal management efforts and operation modifications required for outsourcing. In reality, many organizations save far less than they had anticipated with CAD outsourcing.