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M_lp-thumb_Everything-you-need-to-know-part-2

Everything you need to know about offshoring Part 2

Looking for a guide on how to start you on the path to offshoring success? Here, we will cover topics like the systems and processes required, choosing the right provider and how to avoid common offshoring mistakes.

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The systems and processes you'll use when offshoring

A lot of businesses struggle with understanding what systems and processes they need to start their offshoring journey on the right foot. They feel they don't have the time or expertise to choose and integrate the right solutions, and they often don't feel it's a very high priority.

When most of the work is done by a handful of people, everyone's very familiar with how things are done. They know their own processes inside-out, and they've been working together long enough to learn each other's processes too. So there's no perceived need to formalize, document or automate any of it.

If you're planning to offshore, it's better that you consider your systems and processes now. Because once you hire your first offshore employees, they'll have little to no prior knowledge of your business, and they'll immediately need to know what to do and how to do it.

Clear systems will help them do their jobs effectively, and you'll see a quicker return on your investment which will mean:

Offshoring_Everyone works more efficiently
Everyone works more efficiently
Offshoring_Better job satisfaction
Better job satisfaction
Offshoring_Better staff accountability & KPIs
Better staff accountability & KPIs
Offshoring_Better quality control
Better quality control
Offshoring_Predictable outcomes
Predictable outcomes
Offshoring_Consistent products, services and brand representation
Consistent products, services and brand representation
Offshoring_Consistent customer experiences
Consistent customer experiences.

Transition to the cloud

High-speed internet has made businesses and employees more connected than ever before, especially for teams that work remotely or offshore. The most noteworthy advancements are:

  • Real-time communication - instant messaging channels, along with video/voice chat make for near-seamless communication between team members, even when they're in a different country.

  • File storage - services like Google Drive, Dropbox and OneDrive allow you to securely store your files in the cloud. This means they're all backed up and your team can access them from anywhere, on any device.

  • Collaboration - between the services above and the wide variety of available online tools for contact, sales pipeline, project and task management, you can enjoy real-time collaboration no matter where your team members are located. They can work on the same files at the same time, see the same information, comment and discuss instantly, and send and receive files, almost as if they're in the same room. And you don't have to worry about version control or files getting buried or lost in long email threads.

This means using an integrated offshore team is easier than ever before. And innovative tech companies are developing new solutions all the time, so it's only going to get easier.


Start systemizing now to get ready for your offshore team

So where can you start with systemizing your business? It really comes down to knowledge: getting it out of your head and into a format your offshore team can use. There are three basic steps to systemizing your business.

  • Step 1: Document everything you do in your business - and how you do it. Documenting your processes will help you see more clearly which tasks in your business can be offshored.

  • Step 2: Now you'll need to organize this information so that it makes sense to someone who's new to your business.

  • Step 3: Put all of this information into a process library that's accessible to your employees via either the cloud, your project management system or your password-protected online hub. It's a good idea to restrict access to certain sections, depending on what's relevant to each role.
Offshoring_Start systemizing now to get ready for your offshore team

Choosing the right offshoring provider

Let’s go through some of the factors you can use to compare different partners. This will give you a clear understanding of your business needs and how to match those needs up with a suitable partner.

Location

Location

If you're looking to offshore in a specific location, you'll need to find a partner that's established in that area. But regardless of where you offshore, you need to make sure your partner's facility is located ideally for:

  • Attracting and retaining talented staff
  • Public transport (or parking) access
  • Good internet access (with fast speeds and minimal downtime).
Offshoring_Recruitment process

Recruitment process

When comparing offshore partners, discuss their recruitment process. Find out how they source talent, whether they have an existing database of qualified applicants, how quickly they can fill roles, and how involved you need to be in the hiring process.

Offshoring_Facilities

Facilities

Generally, 'managed offices' include all the furniture, IT and facilities your team will need to do their jobs. Your offshore partner should provide internet access, computers, a desk and a chair. And a clean, comfortable and professional work environment.

It's important to also ask about the ongoing support you're entitled to, for your staff. To succeed offshore, you really need your partner to be a black belt in operations.

Offshoring_Stability

Stability

Stability is an extremely important factor when it comes to choosing your offshore partner. After all, you're at the start of what will (hopefully) be a long and profitable relationship for your business. While offshoring is a strong and growing sector, especially in the Philippines, sometimes things can happen that may rock the boat if your partner isn't prepared.

To gauge the stability of your service provider, ask them questions about:

  •  How long have they been in business
  • How steady their growth has been
  • Have they experienced disruptions to their services over the past few years and if so, why?
Offshoring_Costs, transparency and fee structure

Costs, transparency and fee structure

Overseas labor costs mean offshoring has the potential to save your business a significant amount of money, but labor costs aren't the only cost consideration. Your choice of offshore partner will make a big difference to your bottom line, because they don't all offer the same savings, inclusions and set up.

Every offshore provider has its own unique approach to fees. Before signing up with an offshore partner, it's critical to find out exactly what they include and how the fee is broken down. That way, you don't end up with any unexpected costs. And just as importantly, you'll know your staff are getting a fair wage.

Offshoring_Quality

Quality

When it comes to choosing your offshore partner, you want to ensure they’ll deliver consistently good outcomes for your business. How will you know if they can do this? Analyze their infrastructure, tech, equipment and their internal management structure.

Offshoring_Who’s responsible for what

Who’s responsible for what

When you're comparing your options, make sure you are clear on what you’re responsible for and what your partner is responsible for. This will extend to the recruitment process, the infrastructure, who staff report to and how your offshore team will spend their time.

It’s common for businesses to perceive outsourcing as a set and forget strategy, however, this isn’t the case at all. Outsourcing is an ongoing partnership that requires efforts from both parties, the provider and you.

It’s one of the many reasons why it is so crucial for you to explore your options so that you understand how each provider works and which provider will be best suited to you and your business.

Offshoring_Stability 5

How to avoid the usual offshoring mistakes

Businesses that don’t set up their offshoring solution successfully from the get go and maintain them are more likely to experience significant repercussions to business productivity and end up believing offshoring to be a waste of money. But it doesn't have to be. So let's talk through the mistakes some businesses make and how you can avoid them.

Offshoring_Mistake 1
MISTAKE 1

Treating your offshore employees as separate

Both your onshore and offshore teams will be more effective if they collaborate and communicate with each other.

How to avoid it
Your overseas employees are not 'out of sight, out of mind'. No matter where they're located, you need to be responsible for ensuring your team achieves good outcomes.

  • Connect with them
  • Communicate with them daily
  • Help them live and breathe your company culture, products and services
  • Use an offshore champion to bridge any gaps between your onshore and offshore teams.

Your offshore team are real people and a very real part of your team, just like your local staff. Treat them as valued team members and you'll get the best outcomes.

Offshoring_Mistake 2
MISTAKE 2

Not providing appropriate resources

If your staff don't have the resources they need, they'll be less productive and feel like you don't understand or value them, which will reduce morale and loyalty, and increase staff turnover rates.

How to avoid it
Consider the resources your employees need to get their job done well, and make sure they've got access to those resources. As a minimum, ensure all team members have:

  • A modern workstation (computer, desk, etc.)
  • A stable internet connection
  • Appropriate software
  • A comfortable climate (air conditioning)
  • Minimal distractions
  • Somewhere to take breaks
  • Bathroom facilities.

You should also consider things like access to transport, parking, food, shops and their commute distance.

Offshoring_Mistake 3
MISTAKE 3

No backup or disaster recovery plan

If your offshoring location has extreme weather or unreliable infrastructure, you need to have a business continuity plan. Otherwise it's just a matter of time before you suffer some significant and very costly downtime.

How to avoid it
Plan ahead and ask yourself these questions:

  • What if the tech or internet access in your building goes down?
  • What if your employees can't access their usual workplace?
  • How might these issues affect your day-to-day operations?
  • What processes can you put in place to protect your employees and business, and ensure maximum up-time for your customers?


For example, your provider will need comprehensive contingency plans for natural disasters. This ensures that staff can continue providing services in a nearby location with minimal disruption.

Offshoring_Mistake 4
MISTAKE 4

Not investing your time into your offshore team

An offshore team requires significant time investment - up front and ongoing. Businesses that compromise in this area will miss out on achieving the best possible outcomes.

How to avoid it
From the very start, you need to:

  • Take time researching your partner on the ground to ensure they're a good fit for you
  • Create systems and processes in your business
  • Create job roles and descriptions
  • Hire the right people
  • Provide them with detailed training and inductions, and help them get to know your products, services and company culture.

You need to train, mentor and speak with your offshore team on an ongoing basis. This will improve the quality of service for both you and your customers, and consequently lead to a stronger return on investment.

What’s next

If you want to learn more on the above topics, including how to transition tasks from onshore to offshore, creating your offshore strategy, how to get your onshore team onboard and how to manage your offshore team effectively, then download the full version of our ‘Everything you need to know about offshoring Part 2’ eBook today.  Just fill in the form below. 

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