Outsourcing offshore, onshore...or simply not sure?
Thanks to the digital revolution, procuring business services across oceans has rapidly become the new normal - and all in a span of a generation. Known in corporate circles as outsource offshoring, companies of any size contract their major operational functions to specialized and efficient service providers in a foreign land in order to keep their core business streamlined and thus, kinder to their bottom line. It’s been a win-win strategy since the turn of the 21st century, with SME’s quick to follow the example conglomerates set back in the 1990’s. Within decades, suppliers of high demand services began popping up across the globe offering just about any specialized services from comprehensive call center operations to software development. Over the years, hubs have emerged in much of Asia and now Eastern Europe too. Just an email, Skype call or plane ride away from a client means the outsource offshoring model has made good business sense for many. And despite the rising threat of bots, digital labor, and the political pressure to employ onshore specialists, the outsource offshoring business model, according to KPMG LLP at least, is not likely to disappear any time soon. In 2017, for many businesses, there’s still a strong case to be made for offshore outsourcing versus onshore options.
Still not convinced? We explain why…
Outsourcing offshore still offers value for money. The appeal of outsourcing specialized services from abroad continues to be strong because companies burdened by the need to implement cost-saving measures find they can cut their costs by as much as 40% without sacrificing quality. Clients who commission the services of Niteco for example, benefit from experts who obtained their knowledge from Sweden, the UK, Australia, Singapore, Russia and Japan, all for a fraction of the cost of European, American or Australian based specialists.
Clients anywhere in the world can access the largest pool of technical talent by hiring teams based in Asia. The Asian continent has long reigned supreme as global leaders of technological skill and know how. The economies of India, The Philippines, China, and now Vietnam have been boosted significantly thanks to the proliferation of these hubs and the trend is set to continue. As Asian-based experts remain at the forefront of innovation, clients who source talent from the continent are confident they are procuring the best and brightest.
Rapid technological advances mean continuity, efficient work flow and two way communications is achievable. Thanks to improved technological infrastructures that have made Skype, FaceTime, Slack and emails an efficient median in which to communicate, as well as the popularity of management systems such as JIRA and Asana, maintaining regular contact between the client and the software development team, and keeping project sprints on track has never been easier.
Contracting outsourcing teams offers clients flexibility. Outsourcing teams can be hired for short term or long term projects, without corporates needing to bear the brunt of bloated associated costs such as office space, employee perks and taxes.
Outsourcing offshore models have now evolved, with service providers adopting a partnership mindset. This has led to a preference for setting up dedicated teams to serve the needs of one client for the entire duration of their project. Once upon a time, it was common practice to have a range of experts working on one project ad hoc. But now, in a bid to minimize mishaps, serious offshore companies such as Niteco have implemented new models that allow clients to build and manage their own teams, from the project manager to the technical members. In addition, the practice of basing at least one project manager near the geographical location of the client while the rest of the project team works from their base in Asia is proving to significantly reduce time to market.