Tips For Offshoring Tech
Offshoring is known as a process when a company relocates its business processes to another country. These processes may include any in regards to manufacturing or processes which support it.
A very well-sought kind of offshoring is when IT services are offshored to a 3rd party or as we may put it, another company located in another country. Why do companies do this? Some companies have so diverse needs in terms of IT that the in-house teams don’t have enough capacity in terms of time or skillsets. Thus, the need to outsource in a different country arises.
Not just this but another advantage of offshoring is usually lower costs resulting from lower wages or reduced operational expenses. A lot of companies offshore their processes to countries with lower labor costs. It becomes beneficial through a competitive advantage to the company by using the lowered cost amount to invest somewhere else beneficial.
However, to avoid any inconvenient situation, few tips which should be followed are here when offshoring IT services:
1) Choose diligently:
Choosing the right service provider is very important when outsourcing. It is important to first list down your requirements and then evaluate potential service providers based on how well the fit those requirements. Having a cultural fit with the outsourcing partner can be a major plus point. You may also contact clients of the outsourcing firm to know more about their client handling.
2) Define the objectives clearly:
You need to state your goals clearly and precisely; what you want to achieve along with any potential timelines. It becomes much easier this way if the objectives are explicitly defined upfront. Defining and communicating objectives clearly helps avoiding potential hiccups in the future.
3) Think big, Start small:
When you’re dealing with an offshore outsourcing company for the first time, it might be a better strategy to outsource functions in a phased manner rather than all at once. Doing so will give an opportunity to both partners to understand if they are compatible with each other and that too, at minimal risk. If the first phase of the project is successful, outsourcing can be subsequently scaled up.
4) Communication is key:
As offshoring naturally entails a difference in time zones and different cultures, the most important aspect of outsourcing is having effective communication. Along with communicating goals properly, it is essential to have an effective communication strategy in place. Weekly or monthly schedules for reports or meetings etc. should be set up in advance keeping in mind the time differences. Also, it is important that you and your service provider can speak a common language to ensure minimum language barriers. If such barriers do exist, translators would need to be hired which can be an added cost, financially as well in terms of efficiency.
5) Visualize and ask:
It can be helpful to anticipate and visualize the challenges that may occur in the future. You can create hypothetical situations and ask service providers how they would react in such situations. You can ask if they have worked on any similar project in the past and how did they overcome any challenges. Doing so can help avoid future problems and ensure that the relationship is mutually beneficial.