You just started your crafted figurine shop with a cracking marketing plan, enthusiasm, and greater vision. But as time goes by you come to the realization that you are low on budget to manage everything by your own and you do not have enough expertise resource in order to maintain your daily business. Above all, you feel like that you can grab more customers if you could sell your figurines on your e-commerce website without a middle medium. But making a full-fledged site and its continued maintenance is hard to manage with the in-house team if you can form in the first place. You plan on taking a loan, but time is a big factor. Because you feel that if you don’t grab the market as soon as possible your idea can get duplicated and you can lose your business and market altogether.
There are thousands of stories like this we personally saw, read or heard from others. This is why those terms offshoring, outsourcing, delocalization, externalization is so popular in today’s business arena. In 21st century small and startup business are rising more than ever by their cutting age ideas and vision to change the world. But at the start, they feel like that they are low on people or budget in order to push their next project to the market.
You can offshore a number parts or work among them offshoring web development is the easiest and more profitable both in the short term and in the long run. So, take a look in details are the benefits are –
1. Effortless Hiring Process
Hiring your desired team and making changes in their task during project is one of time major perks of having an offshore web developer team in your sleeves. This isn’t something new in the tech world in fact, this is one of the major reason for new innovation in this field. Often time you do not need a dedicated team in your space because web development is a practice that can be managed from outside through offshore outsourcing.
When you are choosing a company, who specialized in hiring these programmers and designers, your headache of publishing a circular and screening the right candidate becomes much easier. But it would be a good idea to know your team and get a feel of their experience. You can judge them by their previous projects, their educational and professional certification. Having a good idea about your offshore team can give an idea about your project and progress of the project.
2. Cost Saving
One of the most obvious points. There is no single web project where the business owner did not save any money because of offshoring. It costs up to 70% less when you hire an offshore web development company versus a local development professional. This is not only because of cheap labor, completion plays a huge role in lowering the price of those projects. Because of the growing popularity of this industry a lot of company competing against each other to provide the best service in an affordable price range. As a result of such tough competition they often look for the best programmers and best practices so that they can minimize their cost at the same time providing the best service possible.
# Office space
Office space can be a big deal when you are just starting out in your business. You are not sure how to utilize the space for maximum productivity and how long you gonna stay here before shifting into new place for strategic reasons.
# Office resource
There are a lot more to cover in office supplies than simple plan covers.
Computer and Electronics – Printers (printer ink, paper), copy machines, phones, power strips, and lighting.
Desk supplies – Items such as pens, pencils, markers, highlighters, notepads, paper clips, staples, notebooks, and binders may need to be replaced often.
# Management cost
Managing a workforce or a simple team for that matter isn’t a piece of cake for starters. Developing a system and HR management takes time and effort, not to mention resource. But you probably struggling on that because you can’t afford that much time and effort to manage all that. There is one more thing to remember when you are depending on your small team and they are working around the clock to make sure you project don’t fall behind; sick leave can be a nail in the coffin.
According to the U.S. Bureau of Labor Statistics, all full-time private sector employees have an average eight days of paid sick leave available to them after one year of service, 8.7 days after three years, 9.5 after five years, 10.3 after 10 years, 10.5 after 15 years, 10.8 after 20 years and 10.9 after 25 years.
# Extra payment cost
When you look for an experienced programmer, designer, marketer, content creator ….. you need to give them another benefit apart from their basic salary – health benefit, life insurance, paid vacation, holidays, training, professional development programs are few of them.
3. Tap Into Outside Talent
Companies not always go for offshoring just to cut their cost, not at all; outside talent from different parts of the world plays a big role in choosing delocalizing web projects. There is a stereotype that “Asian’s are good with computers.” Which wasn’t created from thin air. Offshore outsourcing is a huge industry in India, Bangladesh, Philippine and in other parts of Asia. Because of that talent are taking this web programming and designing as a profession, which makes it very sacred to them. Because more and more people are taking it as a profession the ecosystem became very favorable for new innovation and new ideas, which is surely a plus point for your project.
4. Let’s You Focus on Core Activities
What is core activities for your business, the deciding factor is up to you. But offshoring can surely take a lot of secondary work pressure from your shoulder and lets you focus more on your core activities. For instance, if you are an e-commerce business who produces bags. Producing your bags and related work – design, fabric selection, marketing, storage management should be your primary focus, not making your website design and regular maintenance hassle. If your company does not have experience in application development, design, or testing, it makes sense to outsource offshore, enabling your team to spend time on core business processes and help to balance the workload during peak times.
5. Strategic Support
Typically doing something on your own can be tiresome, but managing a full-fledged business is just relentless work. It can get even more problematic when you are low on staff and have very few people whom you can take some advice and suggestions.
Offshoring can provide different forms of support for a business, strategic support is the killer in them. With that kind of arrangements you certainly can differ between the providers, who can provide value for your business. Strategic support helps an organization in short run as well as in the long run. Offshore companies can provide you with a different point of view which in times of need which can be life-saving for you and your organization. You cannot find that kind of service and freedom with a freelancer while doing your website or web projects.
6. Fast-Paced Project Launch
You heard “Slow and steady wins the race” but those days are long gone nowadays “Fast and furious wins the race”. Just kidding, but you need to have a steady pace so that you don’t fall behind, at the same the don’t make any irrational decisions. All the business in the market always trying to provide the best of best from their standpoint, in such cases you won’t be able to survive in the market without the help of professionals.
When an overseas company helping, and guiding you through your 30-40% project, naturally you will shine through that project and will be able to concentrate on your next venture. It gives you an edge over your direct and indirect competitors, as well as provides you with a fighting chance to compete against market giants.
7. Risk management
Risk management is a big issue for startup companies because often time companies face a lot of issues with HR management. If not handled properly an HR allegation can ruin you or sometimes you face falsified copyright issues which can be resolved through decentralization of your departments. Another type of synergy that can cross corporate boundaries is the sharing of risk. In financial circles, this is called the “portfolio effect.”
In investing, it’s best to diversify your portfolio rather than put all your money in one stock. By spreading your risk, you reduce your total risk.
Why does diversification reduce risk? If the whole market goes down, you’ll lose, no matter what you do. But if the market goes up while one company makes some serious mistakes, the rest of your portfolio may still do well, and you are not as vulnerable as you would have been had you put all your money into a single stock.
In business investments, the same is generally true. Outsourcing may permit multiple companies to share risk.
Before wrapping up wanted to share some stats from 2003 to give an idea of the recent prosperity in this field.
According to CIO Magazine survey, the lower cost was cited by 78% of the IT executives as
“. . . the main reason for outsourcing offshore. The greatest savings were realized in the areas of labor costs (86%) and reduced project timelines/time-to-complete (37%). Other benefits experienced as a result of offshore outsourcing included increased IT department productivity (44%), competitive advantage (30%), and internal customer satisfaction (20%).”
Take a look at all the pros I have talked about in this blog –
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