Offshore Outsourcing: When It’s A Good Idea and When It Isn’t
In the present day, a lot of businesses are turning to offshore outsourcing. This is the practice of using an external organisation in an overseas location to perform some of your business functions.
There are many motivations for going down this route, with cost reductions being the main one. Nevertheless, offshore outsourcing is not always the ideal solution.
There are many instances whereby going down this route can turn out to be a disaster. You need to know when it is right to outsource overseas and when it is not. This post can assist.
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Potential issues with offshore outsourcing
If you need to have a significant degree of control or influence over the task or service being provided, offshore outsourcing can prove to be problematic. Communication issues are not uncommon.
You are likely to be liaising with individuals who are not native English speakers. Because of this, you can end up falling victim to mixed messages, as the person in question doesn’t fully understand what you have said. This can lead to delays, as projects need to be reworked.
Long delays can be associated with offshore outsourcing
When you count in the fact that you are likely to suffer from time zone differences as well, you see how delays can be further intensified. So, not only should you stay away from offshoring if you have a very particular brief, which you need a substantial amount of control over.
But you should also be mindful of going down this route if your business has a stringent deadline in place, which if missed, would cause serious knock-on effects. Of course, on the flip side, though, you may not even be able to meet this deadline without outside help.
You also need to determine whether offshore outsourcing will be profitable. One of the main reasons for going down this route is to cut costs.
This is why the likes of Virtual HQ are so beneficial. It’s unlikely you have the capacity to spend money on reception services in-house, and so outsourcing this can be highly useful. It is important to sit down and work out the expenses.
Do this over the period of a year so you get a true understanding of the costs. Start-up costs can often be larger without outsourcing but it can then work out much cheaper overall.
When does offshore outsourcing make sense
To conclude, outsourcing offshore can be a great option in many instances, yet this is certainly not always the case. If you need a degree of control over the project and you desire to have the ability to efficiently monitor the quality of work, outsourcing overseas is not the best option to go for.
Nonetheless, if you are looking for a relatively straightforward and repetitive task, such as monthly sales reports for mobile commerce or reception services, then offshore outsourcing presents itself as a good opportunity. It is all about working out what is right for you – both in terms of your business strategy and expenses.
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