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Things to consider before offshoring

Things to consider before offshoring

Offshoring enables businesses to access multiple skills and talents anywhere in the world at very manageable costs. However, before offshoring, business owners should take into account some key considerations to maximise the benefits of offshoring.

Offshoring enables businesses to access multiple skills and talents anywhere in the world at very manageable costs. However, before offshoring, business owners should take into account some key considerations to maximise the benefits of offshoring.

When a product or service can be produced overseas at a much lower cost, it does make sense to offshore.

Before putting up a branch or enter into a contract with an offshoring firm, business owners should consider the following factors first:

  • Infrastructure
  • Legalities
  • Business size
  • Culture
  • Talent pool
  • Standards

Infrastructure

Infrastructure should remain a top priority. Service providers must have top-of-the-line infrastructure systems that contribute to an appropriate working environment. A good working environment ensures the safety of the offshore staff and business data while encouraging productivity and innovation.

Legalities

Whether choosing to establish an individual branch altogether overseas or outsourcing business functions to an existing offshore firm, business owners need to consider legal issues which may arise from the process. Seek legal advice and make sure to develop a contract for any prospective offshore outsourcing agreement.

Employers should be specific to the work to be undertaken, time frames and schedules for projects and performance metrics.

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Other legal considerations include the differences between Australian property laws and relevant legislation in the offshoring country of choice, as well as company bankruptcy rules and judicial systems.

Business size

Business owners should make sure to look into the experience, expertise and capability of the prospective service provider. Insist only on excellence.

A potential offshoring partner should have the quality infrastructure and competent workforce to satisfactorily attend to every business need. As service providers can cater to multiple organisations worldwide, it is important to clarify with the offshoring partner about the kind and quality of work and how it should be done and delivered.

Culture

Business owners should also consider your cultural alignment with the chosen service provider before proceeding with the offshoring process. A certain cultural affinity or similarity between the business and the offshoring partner will surely make the entire process easier and more convenient.

To avoid miscommunication among staff, business owners can engage employees in various cross-cultural awareness training to familiarise with all workforce levels and on the multicultural dynamics specific to the company situation.

Talent pool

Keep in mind that the prospective offshoring location’s quality of education and professional experience dictate the kind of skills business owners will find and work with.

Employers should examine the availability and quality of professional and technical expertise of the service provider before signing an agreement with them. Look for language proficiency and communication skills, accessible and quality educational system and an overall satisfactory professional and technical know-how.

Standards

A solid business and knowledge process outsourcing industry is a must in the offshoring process. Make sure that the service provider has dedicated resources to effectively regulate and sustain satisfactory offshoring processes. Again, never compromise on excellence.

Choose an offshoring partner that has a proven track record in delivering quality work in a timely manner, and is also globally competitive by remaining updated with the latest advances in the processes it caters to.

Read more on offshoring and outsourcing pros and cons.

Things to consider before offshoring
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