Analysis of offshore scenarios has shown that only a limited number of business architectures turn out to be successful in practice. Some business models that are successful on domestic markets may fail in an offshore scenario. Two aspects should be considered when establishing which business model is reasonable in a given offshore scenario: the projects’ characteristics and the consequential damages if the project fails.
Costs for communication can be high in offshore scenarios, and management quality can seriously suffer as a consequence of lack of quality communication. Many analysts consider these facts among the prime reasons for failing offshore scenarios. For this reason, the business architecture has to address communication cost from the very onset. Following is a Business Models Overview.