Managing key offshoring challenges

Offshoring is a widely implemented model of doing business among companies. The bigger corporations have been making use of this cost-effective method to churn out profits for decades now. But in recent years, technology advancements have leveled out the playing field and allowed more of the small and big companies to leverage offshoring for their own gain. The various established benefits offered by the offshoring model cannot be ignored. Cost savings, availability of a highly-skilled workforce, and added time to focus on core business are just a few of the advantages that companies enjoy with offshoring. Their work efficiency increase is leading to profits and company growth.

Yet, some companies are still hesitant about incorporating this approach. While there certainly are proven benefits of offshoring services to a different country, it can also seem a bit challenging. Companies have some concerns about whether offshoring can work for them. Since offshoring leads to some services of their company being carried out in a country miles away from their own location, their apprehension is valid. So, we have compiled a few of the challenges a company might face when taking on the task of offshoring, and with it offered some insight into how to overcome them.

Communication with offshore team

It is arguably the biggest challenge in offshoring, communicating with a team located across the globe from you. The traditional way of working involves working in the same space as your employees and interacting with them as and when needed. But when you have an offshore team, you are working with remote employees who are out of your sight. As a result, the regular interactions fly out the window. While it takes some extra effort, effective communication can indeed be established with your offshore team. With new technologies, you can rely on video calling, instant messaging, and emails to relay the needed information. Knowing that you don’t have the luxury of having them in the same office, ensure that your interactions are informative, precise, and detailed. Set clear goals and expectations daily. Give your team all the necessary input well in time, and you will not be disappointed with the results.

Control over the project

Companies, at times, fear losing control over their projects that are being worked on so far from them. How do you ensure you are the one presiding over the project when you are not there in person? It again comes back to communication. Any trouble over control over projects can be avoided with effective communication. Build a relationship with your team as well as your offshore staffing agency. Let them know before you hire them what you expect from them, make sure you are both on the same page. Subsequently, make sure both your in-house and offshore team are collaborating. Ask for project updates routinely. A good offshore vendor would happily comply with your requests.

Time zone difference

A team located in a different country is bound to operate on different working hours than yours. It is seen as a communication challenge because you will not get to interact with your offshore team as easily. It requires a proper schedule and sometimes even an after-work hours call arrangement for one of the two involved parties. But since these calls with the offshore team don’t occur daily, an adjustment can be made. Furthermore, time zone difference is more of an opportunity than a challenge. It allows your company to work on the project for 24 hours. While one team finishes, the other can pick up from there. The project is delivered faster to your clients. It also allows you to set up 24 hours of customer support for your clients.

Managing an offshore team

This can be especially a challenge for a company that has never worked with remote employees before. Worried whether your project is making any progress? Whether it is progressing in the right direction? Whether your team is putting in enough work? These worries, while not unfounded, can be easily abated. There are advanced tools and apps in the market that monitor and track your employees and their work on the project, like Slack and Jira. You can use these tools to effectively keep an eye on the project as well as your team. That being said, micro-management can be just as impeding productivity as no management. Trust your team and let their work speak for themselves.

Cultural Differences

An offshore team in a different company means having employees of a different culture working for you. While they may have their own work ethic and approach to work, at the end of the day, they are professionals. A professional team will not allow cultural differences to hinder their work. As long as you are respectful of their holidays and related obligations, it should not be a problem. If needed, your company can arrange for cultural awareness programs to help build a more comfortable work environment for both your teams.

Adequate infrastructure

Situated in the USA, you have access to some of the best office space, utilities, and IT infrastructure in the world that allows you to produce quality work. But will your offshore team have the same access? The only way to ensure this is by diving deep into your offshore needs and then accordingly choosing an ideal offshore location for those services. Once you know what services need to be offshored, you can look for your offshore destination with that in mind. Then hire the right offshoring agency that provides your employees with all the necessities. A country like India has state-of-the-art facilities, IT infrastructure, and everything more than your company might need for the best results. Just make sure you invest in the right place with the right vendor.

A quality offshore staffing agency

A lot of concerns boil down to hiring a quality offshoring agency, and that in itself can prove to be a challenge. It will require little effort on your part, but make sure the agency you hire meets your needs. Size is not always the answer; bigger isn’t better. A smaller agency may very well cater to your needs better than a big agency that already has a lot of clients. Make sure they understand what you need and that they have the ability to provide it. It will do well to research them a bit and check their background. An agency can be the difference between a good or bad offshoring experience for you, so evaluate each one thoroughly before hiring one.

Yes, offshoring can be challenging. It needs efforts and works on your part, but in the end, it is worth it for your company.