What are the disadvantages of working with a single large offshore vendor instead of multiple offshore vendors?
There are short term advantages of working with a single large offshore vendor with a diverse set of services. A number of offshore vendors have grown substantially over the last decade and have built a large portfolio of services. To keep their profitability high, they have obvious interests in cross selling their services to clients. The downside is more in the long term than in the short term. If not managed properly by the client, this setup can result in vendor dependence, which directly affects the savings expected over time. Depending on the size of your outsourcing requirement, the large vendors may not offer the right level of service and savings. The number of specialized vendors globally has multiplied over the last few years, due to the high demand for offshore services. Using specialized vendors can substantially increase the ROI and level of service.
