The 17 Biggest Offshore Outsourcing Blunders To Avoid

Plus, while you’re visiting, chances are you’ll get to meet other business owners and managers who are offshoring too. This is obviously great from a networking point of view, but – more importantly – it’s a great way of exchanging best practices with other clients. You need to equip them with the knowledge, skills and attitude they’ll need to fill that role. Just as importantly, you need to ensure excellent team cohesion, collaboration and goal alignment. When you clearly state what you expect from your provider and put together measurable goals for them to meet, you will have a better understanding of how successful they are likely to be. They’ll have their ‘finger on the pulse’ of your offshore team in a way that’s only possible for someone local to achieve.

Outsourcing is a very versatile strategy suitable for businesses of all shapes and sizes. Below are common industries that have successfully implemented an offshore model. Get local insights relevant to your area of specialization, learn what others have done in your industry and leverage their experience. Outsourcing an entire department or division in your business can lead to major efficiency gains.

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ISACA delivers expert-designed in-person training on-site through hands-on, Training Week courses across North America, through workshops and sessions at conferences around the globe, and online. Build on your expertise the way you like with expert interaction on-site or virtually, online through FREE webinars and virtual summits, or on demand at your own pace. About Us Information and technology power today’s advances, https://globalcloudteam.com/ and ISACA empowers IS/IT professionals and enterprises. However, there are steps that should be taken before signing on the dotted line and handing over your company’s keys to an offshore partner. Learn how offshoring improves your productivity and helps grow your business. A creative design agency powered by MicroSourcing, for your graphic design, content writing, motion graphics and WordPress development projects.

In the year 1990, outsourcing as a cost-saving measure, was as popular as ever. Contracts were drawn, timelines are set, and it was a smooth and hassle-free delivery of services. A comprehensive take on outsourcing and offshoring to help you choose the right option for your business.

• The periodic cost of hiring a permanent software developer can tighten your business budget while limiting efforts aimed at minimising costs.
• Techniques such as Six Sigma have been instrumental in streamlining quality requirements, and some companies have aligned Six Sigma to their security framework to derive security-driven return on investments.
• Entrepreneurs can then lower their operating costs and focus more on growing their business and less on trying to manage every aspect themselves.
• If you’ve never been involved in moving an operation before, transitions like this may seem daunting, but with the right team, knowledge base, and understanding for both sides, the transition will naturally smooth itself out.

If you’ve never been involved in moving an operation before, transitions like this may seem daunting, but with the right team, knowledge base, and understanding for both sides, the transition will naturally smooth itself out. Early in the relationship , come to an agreement on communication methods and channels between the two parties. Frequency, style, method, language, roles and responsibility, and information all play into effective communication and have a profound impact on the success and ease of a transition.

Not Protecting Yourself From Security Risks And Intellectual Property Theft

Below are some of the common positions that can be easily outsourced to the Philippines. We also provide you with local market recruitment advice, detailed job descriptions, common software used and more. In that case, offshore outsourcing your software development to a reliable tech partner like NeoITO will provide you an opportunity to work with talented developers at an affordable cost. They help you grow your business while staying within your budget for web app or mobile app development.

Outsourcing and offshoring have become standard business practices in the medical device industry as a means to achieve growth, increase sales, and ramp up profitability. The trend to implement these approaches has only accelerated in recent years, driven by market consolidation, an increase in start-up activity, a heightened focus on cost-effective operations , and other factors. It is an investment of patience and continuous good practices to achieve high quality with offshoring teams.

Beyond training and certification, ISACA’s CMMI® models and platforms offer risk-focused programs for enterprise and product assessment and improvement. Aspiring entrepreneurs who want their outsourced team to share their passion for the project they’re working on should make sure that they have a strong internal culture in place before they hire offshore. Setting up policies about communication, collaboration, work schedules, due dates, and downtime will help ensure great results from your whole team. Many entrepreneurs underestimate what an offshore team can do for their business. Outsourced workers can do more than admin tasks like data entry, email management, and appointment scheduling.

Offshore teams must have subject matter experts who engage in opportunities focused on regulations and are able to drive teams with their experience. Offshore teams execute best when they are led and trained by experienced leaders within the group. Industry certifications and periodic internal workshops on information security and risk management go a long way in building the right team. ISACA® is fully tooled and ready to raise your personal or enterprise knowledge and skills base.

Benefits

Outsourcing gives you the freedom to take back time previously lost to mundane tasks or projects better left in more capable hands. But this doesn’t mean that there will never be a time when you may need to lend a hand or provide input. Even with the best service providers, you’ll still have to take an active role, if only to make sure that things are progressing the way you need them to. Transparency plays a big role in outsourcing, especially when it comes to your provider sharing information about their work with you. When you don’t share information about your business needs, this can lead to miscommunication and wasted time and money.

They’ll typically be a senior manager or team leader – one of your early offshore hires, and someone you feel confident working with. Your offshore champion will be your onshore champion’s main point of contact, and the person on the ground who coordinates your offshore team’s day-to-day time and tasks. As the largest managed operations offshoring provider in the Philippines, we’ve learned a lot. Now, let’s discuss about the combination of both, which is known as ‘Offshore Outsourcing’. It is used by many companies as it offers them the benefits of both outsourcing and offshoring. If you are outsourcing your software development project, you can focus on other marketing, finances, and sales related activities.

In contrast, nearshore outsourcing refers to the practice of contracting services to a country that’s in the same time zone. For example, a small business in the United States outsourcing its eCommerce tasks to Costa Rica. You don’t have to be a Fortune 500 company with an international presence to benefit from offshore outsourcing. Whether you’re just starting and need some help growing your business, or you’re Offshore Software Development looking to take it global, there are plenty of benefits for small businesses too. The best way to do this is to dedicate two ‘champions’ to your offshore team – one onshore and one offshore. Their role is to glue your two teams together, making it far more likely you’ll achieve the outcomes you seek, and far less likely you’ll experience any of the problems that disconnection and distance can cause.

Having structured periodic calls/updates helps achieve efficiency on both sides of the table. With contractual metrics established between onshore and offshore teams, the need to rush and hand back deliverables to the onshore teams highlights a gap in the quality and project management practices. Offshore teams must check their deliverables for quality, voice opinions if they differ from those of the onshore teams, suggest innovative ways of accomplishing tasks and streamline quality processes. Offshore leadership must work with their teams to check if there are any gaps with respect to project management techniques, which affect resources or onshore stakeholders.

Future articles in this series will discuss the pros and cons of outsourcing vs. offshoring, how to scale-up efficiently, how to manage relationships across alternate locations, emerging areas to offshore, and other topics. Outsourcing and offshoring have become the operating practices of the future. If you choose to ignore them, your company runs the risk of being eclipsed by more nimble, forward-thinking competitors that can grow and scale at a faster rate, due to limited bureaucratic practices and structures. There is a growing demand to further saturate offshoring hubs with a view to increase profits.

Take some time to build up your internal infrastructure to support a third-party entity doing work for you. If possible, invest in new technology that will help streamline each aspect of your business before contracting out services or products that an external provider can complete in a more cost-effective manner. If your company outsources tasks to workers in another country, it’s important to be aware of cultural differences, including holidays, customs, and nuances in language.

Is Offshore Outsourcing The Right Move For You?

Outsourcing suggests assigning non-core works or projects that should be completed from A to Z. While offshoring implies the relocation of complete business processes to another country like opening a software development centre, hiring a vendor there etc. In other cases, medical device companies have “inherited” offshore locations as the result of acquisitions during the current wave of market consolidation. The issue of data sent offshore and the risk to its privacy has shown that current laws do not adequately cover or protect US customers when information is sent abroad for processing.

However, building the right team that has the required skillsets, educational background, and professional interests aligning to the services provided by the firm is critical. Hiring process at offshore locations should be based on standards that align with the quality represented by the firm. In this direction, it is important to train offshore teams with technical aspects of security and privacy considerations.

Offshoring is an opportunity to expand your business faster and save on costs. You need to train, mentor and speak with your offshore team on an ongoing basis, just as you do with your onshore team. This will improve the quality of service for both you and your customers, and consequently lead to a stronger return on investment.

Failing To Provide Adequate Documentation And Instructions To Your Outsourced Team

Visiting your staff in person will also give you an insight into their strengths and weaknesses, so you can better allocate resources to appropriate tasks and make decisions about advancement. You need to make sure they’re engaged – just like the rest of your employees. Fortunately, these days, technology makes this a lot easier than it used to be.

If you’re not ready to deal with major issues, your business could be dragged down and left unable to meet its goals or obligations. Before you get started with outsourcing, make sure your team, systems, and processes are set up for remote collaboration. Safeguards like these are essential when establishing an offshore outsourcing agreement.

Not Outsourcing Core Business Or Highly Technical Tasks Like Software Development Services

In the past decade and a half of increasing globalisation, offshoring has been the fastest growing outsourcing market segment, especially in IT services, with India leading that space. Therefore, more companies are offshore outsourcing their work to Indian outsourcing companies. Preferred outsourcing, offshoring, and reshoring locations continuously shift depending on technology, market trends, skill level, labor rates, infrastructure improvements, political stability, and saturation. And new regions are endlessly emerging in the U.S. and offshore throughout the world. Regularly scheduled check-ins let you monitor progress and adjust course if necessary, which is why they’re so important when you outsource some of your business processes. Scheduling regular meetings allows you to communicate current priorities and future deadlines before it’s too late to make changes.

The 17 Biggest Offshore Outsourcing Blunders To Avoid

Data security tools and non-disclosure agreements are a must when working with outsourced workers. Most knowledge process outsourcing providers will sign an NDA to ensure your information remains secure and private. With all of the benefits that come from offshore outsourcing, you’re probably thinking about hiring a contractor, vendor, or full-time worker as soon as possible. However, it’s important to remember that before you outsource anything in your business, you should first make sure that you’re doing so for the right reasons and that you’re prepared to work with an offshore partner. There are many advantages to investing in overseas outsourcing relationships, including cost savings, improved business operations, round-the-clock customer service, and greater access to skilled labor. Let’s take a closer look at what businesses get out of working with an offshore partner.

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Automation brings its own risks, especially related to data security and access security. Wise implementation of automation, backed by constant monitoring of security measures, helps mitigate risks. When actual content or data is being shared, special care needs to be taken when dealing with personal data. Participate in ISACA chapter and online groups to gain new insight and expand your professional influence. ISACA membership offers these and many more ways to help you all career long. When outsourcing work, it’s important to have a plan B in place just in case things don’t go as expected.

Again, it comes back to treating your offshore members as part of the team. Follow our journey from the very beginning to becoming the premier Managed Operations provider in the Philippines. Offshore staffing has a bevy of benefits, not least the potential for up to 70% cost savings. Learn your offshoring options and explore the benefits of Managed Operations over less effective models. Everything you need to about creating a startup culture to maintaining it after scaling. This infographic offers a brief overview of top platforms used to build apps without coding.