Sunday, May 26, 2024

Top 9 Considerations in Offshore Outsourcing

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What is one consideration a company should take when deploying an offshore outsourcing solution?

To help companies make the best decision about offshore outsourcing, we asked CEOs and business professionals this question for their best insights. From asking the right questions to establishing a response plan, there are several things to keep in mind as you consider offshore outsourcing for the expansion and evolution of your business for years to come. 


Here are nine considerations in offshore outsourcing: 

  • Ask the Right Questions
  • Consider the Data Security
  • Plan Team Communication
  • Think of How Internal Policies Apply
  • Weigh the Costs
  • Determine a Payment Method
  • Establish a Response Plan
  • Determine a Common Language
  • Review Their Experience

Ask the Right Questions 

The most important consideration any company must take when deploying offshore outsourcing solutions is, “What are you trying to outsource?” Are you trying to outsource how to do something? Or, do you already know how to do it and you’re just outsourcing the manpower to actually do it? The latter is easier because there are plenty of companies you can partner with who are capable of providing staffing solutions that are more process-oriented. However, if it’s the latter, finding an outsourcing partner will be a lot trickier because you need to find someone who can handle both the creation and the execution of the process.

Phillip Lew, C9 Staff

Consider Data Security 

Data security is one consideration a company should take when deciding to outsource offshore, particularly those stored over shared networks and drives. Even the most complicated networks can be hacked by a simple phishing email if employees are not careful. This is why companies should give both on-site and offshore staff the right phishing training as a first line of defense. Offering a fun and informative phishing simulation program for employees will help reduce your company’s exposure to breaches and attacks.

Nick Santora, Curricula

Plan Team Communication 

Outsourcing is part of every larger company’s operation. However, there are some obstacles that come with it, communication being a major one. Different time zones & cultures can cause problems in ongoing projects. Every company should consider a clear procedure of how to communicate between team members. Solely relying on email communication won’t do it efficiently anymore. 

Maximilian zur Muehlen, CustomPlasticPart

Think of How Internal Policies Apply

In our experience of outsourcing work to full-time contractors, one consideration that we’ve faced is how our internal company policies apply to external contractors. For example, we have a company-wide bonus as well as a bonus tied to personal goal achievements. With these bonuses being so visible and talked about at a company, it’s natural for an outsourced contractor to wonder whether they’re included as well. After all, they’re full-time and equally committed to the success of the company. Before outsourcing, think through internal policies and communicate the policies to a contractor on day one to get on the same page. 

Brett Farmiloe, Markitors

Weigh the Costs 

One consideration a company should take when deploying an offshore outsourcing solution is the costs. One of the main reasons for moving something offshore is to lower the costs. However, you don’t want to go for the cheapest option available. You want to invest your resources in a quality offshore outsourcing solution that doesn’t hinder your performance. Find the right balance in costs and find the right offshore outsourcing solution for your business.

Craig Carter, Jack Mason

Determine a Payment Method 

You should have a clear plan for how you are going to pay, and what regulations may be involved. For example, your outsourcing provider may not be able to accept checks in your currency, or the government may require you to withhold taxes for foreign vendors. By getting clear on what you will pay and by what method, you can solve many headaches before they arrive.

Michael Alexis, TeamBuilding

Establish a Response Plan 

If anything goes wrong, will you be able to reach the vendor for a quick resolution? Or will you have to wait for the next scheduled meeting? While this is always something to consider when outsourcing, time differences can make speedy responses an added challenge. There are always ways to get around these issues, but you will have to coordinate with your preferred vendor. 

Tom Mumford, Undergrads

Determine a Common Language 

One consideration a company should consider when deploying an offshore outsourcing solution is the language barrier when deploying this option. Language is critical to communication when deploying an offshore outsourcing solution and it should be considered before deploying. Does this company speak english fluently? Will there be problems trying to convey your business needs? All of these things need to be taken into account.

Chris Gadek, AdQuick

Review Their Experience

Learn as much as you can about the management team at whichever offshore company you choose. Make sure that they have the experience to tackle your projects head-on. An experienced management team can make all the difference when it comes to outsourcing talent.

Greg Hannely, Soba Recovery

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