Lee Kuan Yew, the first prime minister of Singapore said, “If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business”.
Offshore outsourcing is a geographic activity. In the nations that are developed, products and services are expensive because the human resources required to produce and distribute them are costly. Meanwhile, the developing part of the world offers a large pool of inexpensive and skilled labor. The growing number of start-ups, the quest for specialized skills, the necessity to harness innovative technologies like AI, Machine Learning, Big data Analytics, etc. has forced businesses to leverage the benefits of hiring an Offshore software development company. And, mind you, offshoring returns the favor. With years of experience under their belts, demanding skill-set one looks for and the cost that one can never expect in their region, it pays back.
For all that, some of the common outsourcing engagement models that businesses choose from are Out-staffing, that works to spike the staff count and team size, product development services, R&D or innovative outsourcing.
STARTUPS AND OFFSHORING
According to a report by Quartz , 46% of startups fail because they run out of money.
Startups and Offshore outsourcing companies tend to meet each other’s needs quite to the core. The competitive market is tough on Startups and they certainly fight hard to make their place in there. So considering that, they need a technical team of highly skilled people that ensure productivity for their company. While on the other hand, matching their requirements, the offshore companies provide just the opportunity for businesses to choose skilled people for specific technologies with low-cost IT services, and guaranteed deliverables. This is definitely accelerating a company's chances of growth, for sure cutting down on overhead expenses such as office rent, payroll, insurance benefits, vacations, recruitment fees, etc.
Generalizing the context, I would say amidst the strategy and planning that goes into running a business, offshoring is after all not a bad idea. By all means, it provides unlimited access to a resource pool at low costs. So, if you’ve been bringing in advantages for your business by hiring an offshore team, you have been doing the right thing. And, if you’re not there yet, it’s time to bang a few bucks!
Now it turns out, once you know why you should outsource, it then comes down to how you should be doing it. Mostly for the first timers, who cannot be relying on the beginners luck for this one. Therefore, to make sure your first time doesn’t go wrong, follow the words below.
In the want to combat the competition in the market, increase their business capital, Businesses are turning to offshoring as they are aware of the benefits that come along with it. And, why not, it’s always good to be planned and prepared, to make a check list of pros and cons, and have a strategy to follow. This gives us reasons to analyse the outcomes - the benefits and losses. Which is why I am going to take you through a list of characters that one needs to look at when hiring an offshore team. I’ll prepare you to hire one now!
GO FOR A MIX
Yes! Focus on hiring a team that is a right mix of generalists and specialists, which will bring a broad spectrum of knowledge and experience to the table. Won’t that work wonders for your business? You need to make sure the team of people handling your project are well trained, skillful, experts in their own field, and capable of handling the most rigorous operations. Also, if possible interact with them to make sure they are honest workers. Good people will make your work easier, flexible, and trust me, the built trust in them will reduce the stress.
With a dedicated offshore development team, and everything streamlined, you will not have to spend any of your time training new employees, as each outsourced developer has their skills already in place.
LOW COST AND QUALITY
Offshoring always brings good business, when it comes to cost cutting on operations and increasing profits. In fact, the real notion behind it is to outsource operations to save funds that could be used in the development of the company. So, of course, low cost is to be considered but mind you, not at the cost of quality of work.
Understand this by an example. It’s like buying a gadget for yourself. When buying one, you would look for all the updated specifications that make your experience worth the cost and you might not even mind paying a little extra for good services and experience. With satisfaction, you would happily invest in a good brand with all the latest features, after making sure that reviews talk all good about the product. Did I put that right? Isn’t that how you make a purchase? And, of course, lower cost is an added benefit.
Why do we use certain tools for a specific task? First to save time and so that performing the task becomes easier, and the results are quality driven. Having said that, in this technology and customer experience-driven era, technical expertise fills the technology gap that some companies experience so businesses do not have to worry if they lack the skills and proficiency. With all of that, plus when the providers understand the industry and the work that is expected out of them, it becomes immensely reassuring.
UK had proved not to have "all the skills we needed," explaining why the telecoms giant has gradually outsourced around 90 per cent of its IT work overseas.
Meryl bushell, the chief procurement officer at Warwick Business School added that efforts to find highly-skilled IT workers in the UK, who offer the same expertise as their Indian counterparts, would cause projects to take too long.
Source: Contractor UK
To save yourself from privacy theft, it is very important to take care of the data security and discretion policies. Confidential agreements like NDA and SLA (Non-Disclosure Agreement & Service Level Agreement) will ensure confidentiality between the two parties so that no information is made available to any third person or party by any means. You need to make sure that the offshore vendor has a robust security policy and a dedicated team to carry it through so your company is protected from any possible infringement on privacy and security.
The great work done by the company adds to its reputation. When the reputation of the offshore company is in your knowledge, it definitely gives you a breather. Never hand over your operations unless the offshoring company has a solid reputation of high quality work, proven track record of success, and excellent service. Do not think of overlooking this factor in a way. You need to understand that the reputation of a company overweighs the chances of risks for you.
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