Offshoring is just like an extra hand for your dear business. When you start outsourcing various aspects of your business, you begin to switch from a people-focused model to a system-focused model. Day by day people finding new ways to outsource their task in order to make their life little easier due to advantages of offshore outsourcing. More than 60% of the total outsourcing market is composed of IT business but still there is some serious acquisition on the face of this industry itself. Despite all those misconceptions about “offshore outsourcing” never been so popular like recent years: what does it tell you?
Let’s have a look at some stereotypes about offshoring web development and data that proves that those misconceptions have no ground at all. It is time to settle those myths once and for all.
1. Illegal Companies Do Offshore Outsourcing
It might be the most frequently spoken misconception about offshore companies. You have to keep in mind that every industry has good and bad business within itself. But that doesn’t mean you can judge the ecosystem it’s built upon. Not only that different parts of the world have their own regulation. As a result, one standard rule might not be the case for everyone. But when it comes web development industry you can be certain that everyone is following the same standard and there is no complexity that can arise in your projects.
But keep in mind that there are some shady companies who don’t have any office or standard working procedure. So in order to keep yourself safe from those companies, you have to be familiar with that company you outsourcing your job. If you have not collaborated with them before, do some research about them
- What is their working condition?
- Companies business structure and can they handle your project or not?
- How many workers they have?
- What type of projects they generally do or did?
- Companies they have worked with before (collect some reviews from those companies)
2. Offshore IT Projects are Out of Your Control !!!
This is an obsolete reason in the offshore outsourcing industry. Nowadays people are always connected with each other, thanks to modern media and communication apps. No matter how far you live in you are always a click away from your team. It is always a good practice to know full details about your team so that you can get an idea, what you should expect from them. Project management tools can be very helpful and almost necessary tools in order to get things done in a structured way.
There are some awesome project management tools in the market.
- Active Collab
- Zoho projects
But these software’s cannot do 100%. Take a look at some of the point I have mentioned here in order to manage your team fluidly and you can always come up with new system that will suit you more.
- Keep a middle man who can report to you directly
- If possible, pay them a visit
- Give them some surprise day off once in a while.
- Do mention their good work
- Mix and match work intensity
- Keep track of your time to understand who is working better in your project team. (oDesk Team Room, Elance Trackers)
3. Requires Substantial Capital
I don’t know how but trust me some people have this misconception about offshoring. This is undoubtedly the most ridicules reason not to offshore. Why you may ask? Because the core concept of offshoring is reducing cost that would have occurred otherwise.
Outsourcing has become a major market activity, with greater forecasting the IT outsourcing market alone to reach $287 billion in 2013. With an annual growth rate of 6.5% until 2017, average annual IT outsourcing investment has reached almost 25% of total IT spend.
Some people argue sometimes there is hidden cost in offshore projects. But the blame for such practices cannot be imposed on one party. Suppose, a client company demands some new features in their e-commerce site in the middle of a project which was not included in the agreement in the first place. In such situation, what can a service provider company do? Often time they hire new developers in order to finish the project in time and as a result of that the price might go up a little bit or that new feature cost extra naturally.
So what can you do as a client to make this a win-win situation –
- First thing first, you have to be certain about your requirements before signing the agreement.
- Get an idea about the whole costing scheme (both service you are taking and not taking) of your service provider company
- Keep a shared spreadsheet of your costing and tell your service provider to update that in time to time if needed. ( It sounds a bit unprofessional, but it will give you result)
- Foremost of all, make a solid agreement and make sure you are putting your thought into it in terms of your future need.
4. Select the Lowest Price Possible
When offshoring it is natural, you are trying to cut off your cost but try not to overdo it. Let me explain what I mean by that, when companies try to find the lowest service provider often time they forget about their end goal which is the quality work. Along with cheap price companies often demand their project in a minimum time period. As a result companies face hard time juggling between time and resource, reason being in order to finish the project they need more programmers but they don’t have the budget for it because they also have to keep price in check. More workers mean more costing which will ultimately increase the price of the service.
You can role with the lowest price when you are buying any commodity but taking web development service or any other service as a matter of fact is far from that.
So, what can you do –
- Crunch some numbers to find out value you are getting against your investment
- Do you trust them with your project and money
- Set up meeting in order to understand their point of views
5. Time Difference Can Hamper Project
This is a generalized idea about offshoring and this is not true if you take all industries into consideration. I will give two example to show you both side of the coin.
The time difference is good in web development, software development; tech industry in general. For instance – You are an e-commerce business and for maintenance purpose, you need some time off when you can’t afford too much traffic. In such condition, you can manage work with an offshore team, because in off pick hour your office employee won’t be available. But meanwhile it is morning in other parts of the world and they are ready to rock.
On the other hand, time difference can be bad for offshore arrangement in accounting firms. Reason being these industries work in real time. Times will come when you or your customers need to get in touch with your employee and you assigned that part to an offshore team. That can spark some problem along with customer dissatisfaction.
So, as you see there is both sides to it, now you have to decide offshore will work for your company or not.
6. Offshoring Stands for Cultural and Language Barrier
The Cultural gap is not a big deal if you think it through, cause these days everyone knows what is the norm in other parts of the world. What is their liking and what they don’t like. Then again it doesn’t matter in most of the industries. In web development it just an excuse, not even a good one.
But if you think it can somehow affect your deal, it is always better to train your offshore team a little bit and give them an idea of what you are looking for in return. Cultural gap can even be profitable if you know how to use it properly – during “Christmas” everyone takes their vacation in some parts of the world. But if you are an e-commerce business or any kind of business who need tech support, how will you manage a business in that time period. Offshoring can save you at that time because some part of the world people doesn’t take their holidays in December. You can enjoy your holidays with your family without any stress.
7. Offshoring is Only for Big Companies !!
I am not denying the fact that big companies do offshoring in a larger scale. But did you ever ask yourself how they became big companies? They are in today’s state because of offshoring. Take for example, “Dell” they have always been taking offshoring seriously. “Linux” they have an open source platform and most of their programmers from outside.
In broader perspective offshoring definitely makes sense because, you won’t be able to compete with your market leader as a new business or startup if you don’t cut your cost, while they are cutting their cost for a while.
Some major saving points
- Office space
- HR management
- Employee health benefit and other benefits.
8. Offshoring Drags Time and Causes Overpays
It is a widespread misconception and it becomes even scarier if you combine that with “offshore teams are hard to control”. but we have to take a closer look at the situation to get the full perspective.
In an ideal web project, I believe that 15-20% of the time should be spent on client communication and project management, while the remaining 80-85% should be spent on Strategy, Design, Copywriting, Coding, Search Engine Optimization (SEO) and Quality Assurance (QA).
The misconception is that offshore companies drag their project to increase the profit. But this is not the case in most of the time, especially in web development industry. In offshore web development industry, every company is trying to earn reputation and enrich their business. For that, a bad project or a negative review can hurt a lot, because of that companies always providing the best service possible. At top of that, web development companies always maintaining multiple clients at once. As a result, as soon as they are done with one project they can move to the next one. Nonetheless making a website or a web application is not “period” of a project. This type of project requires maintenance or bug fixing, a dedicated In-house IT specialized team just for that can be quite expensive for small companies and startups.
So, I would suggest before diving into the trend of offshoring dip your toe a little bit. I mean offshore that part of your organization that can be handled remotely with partial monitorization and with the help of your trusted offshore outsourcing company. Do not believe everything you see, because “You have a business to run”.
Do you think these points were helpful for you? Do you know any other misconception that isn’t mentioned here?
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