Offshore Vendor Selection: Accelera Software’s Dilemma

Accelera is a software-focused company based in Seattle that is faced with an increasingly competitive market for its products in the IT space. High demand for qualified and experienced engineers and coders had pushed compensation requirements higher and put downward pressure on profit margins. Product lifecycles had shortened, and the need to constantly innovate was difficult on an 8-hour work schedule. Accelera’s experiences with IT outsourcing to Australia and Israel had been resounding successes, and with its ever-expanding global footprint, the company was eager to establish a presence in other parts of the world. After internal discussions, Accelera decided to explore the possibility of outsourcing some of its IT work to either Eastern Europe or South America. In the process, the company's senior leadership needed to evaluate country-specific factors and those of potential vendors/partners. Only two vendors would be invited to Seattle for further interviews.