Offshoring Best Practices
Offshoring can be a risky business, but you can do something to overcome the risks and achieve the company goals. Keep these best practices in mind to help you establish a good and long-lasting business relationship and minimize the risks that come with transferring work offshore:
- Determine if offshoring is a suitable solution for your company.
Do you really need to outsource work offshore? A lot of companies are joining the offshoring bandwagon but this does not mean that you should, too. Cost reduction remains the top deciding factor in offshoring. However, avoid getting lured primarily by the promise of huge cost savings. There are other factors to take into consideration and bear in mind that certain risks may occur throughout the process.
Some companies have the impression that they can outsource their "mess" offshore and the service providers will fix the problems for them. It does not work that way. Offshoring is done to cut costs, enable you to focus on core competencies, among other reasons. You cannot expect a solution to your mess by passing it on to a service provider.
Offshoring must be done for the right reasons. Move work offshore if you think that it will be really beneficial for your company.
- Staff leasing vs. captive center
Choose the model that's appropriate for your business requirements. Offshore Staff Leasing or offshore staffing is an outsourcing solution that enables you to choose your staff that will exclusively work for you in an offshoring location. On the other hand, a captive center allows you to retain full control over a large operation offshore while utilizing the expertise and resources of a service provider.
- Make your outsourcing partners feel that they're part of your team.
Keep them informed of what you want to achieve. Keep communication lines open and do not forget to value their opinions. What they have in mind may help a lot in meeting your requirements. Bear in mind that the outsourcing operation will not be successful without the knowledge and cooperation of the other party.
Companies invest time, money, and effort in order to establish an efficient outsourcing relationship that will last for a long time. To achieve this, it is also essential to accept the fact that there are risks involved in the process and paying attention to the best practices above will be helpful in mitigating the impact of those risks.