RED HERRING | The Hazards of Offshoring

"Like the line the doesn't know the territory in the The Music Man, experts say the biggest mistake a company can make is failing to take time to get to know the region."

During a panel discussion in San Francisco, Ashish Gupta, a partner at the Woodside Fund, said U.S.-based managers can’t rely on advisors and agents when contemplating a move offshore.

Even a quarterly visit to India, or hiring a scout for an overseas operation, often is not enough, he said. “In the first case, you get a cold, you get jet lag, and you lose money,� Mr. Gupta said during Thursday’s presentation. “The second gets more insecure over time, but might be a transitional model.�