Is Offshore Outsourcing Beneficial For Your Business?

Editor’s note: This is a guest post from Vishal Vohra of Rheal Software. As an ‘in house’ IT professional myself; strong, credible, and reliable outsourcing resources both encourage us internally to do better, and to seek opportunities where we can cooperate for the best business solutions with our offshore partners.

Benefits Vs. Risks of Outsourcing IT Services Offshore

Outsourcing IT offshore has become the norm as companies across the US and Europe look for the best offshore firms to handle their information technology needs. India and China have become one of the prime sources for outsourcing offshore when it comes to the IT industry. For companies that are looking at their bottom line, there are good reasons to consider outsourcing their IT to reputable sources.

However, it pays to understand both sides of relying on outside companies to handle this important aspect of your business. This is especially true for using companies that are based in other countries such as India.

BENEFITS

Over the past couple of decades, countries like India have become one of the most popular locations for outsourcing thanks to their many advantages.

  • Cost: If there is any singular advantage that IT outsourcing companies in India have over much of the competition is their lower cost. Because the standard wages are different, it is possible to hire an exceptional company with the same, if not superior educational standards while paying a lower rate. Getting more for less is something that many businesses seek when they are looking outside for support.
  • Training: The right companies in India are properly trained to follow Western procedures when it comes to tackling outsourcing issues. This means that they will prioritize the issues facing your company and address them in a manner that best suits your needs.
  • Experience: Keep in mind that the best companies that outsource their services are experienced in such matters. This means that unlike hiring internally which means taking weeks or even months before they can get up to speed, hiring an outside firm means that they can hit the ground running. You will get an IT firm that has the experience built-in along with a supporting structure that makes it all work for you.

Unlike hiring internally which means taking weeks or even months before they can get up to speed, hiring an outside firm means that they can hit the ground running.

  • Reputation: Despite the lower costs, companies would not be outsourcing their IT to firms based in India unless such businesses had built up a solid reputation. Over the years, many IT companies in India have built up their reputations based on their high quality of work. You should only seek out such companies to perform the work you need accomplished. Exhaustive vetting and a successful trial project are good indicators when choosing a reputable partner.
  • Local: Look for an outsourcing company that has a small office in your country. They will have an edge in terms of understanding the laws, customs, and type of work that your business needs to accomplish. The language barrier is not nearly as restrictive and in some ways, it will be like working with a local company. So, look for an IT firm that has a local office as part of their services.

There are other advantages that outsource companies in India offer to your business that are based on their work ethic, expertise in the field, experience working with other companies, and staying on top of the industry by using new innovations as they become available. These advantages when combined with a lower cost and fast service provides your company with what it needs to expand its information technology services so you can focus on other aspects of your business.

RISKS

Along with the many advantages of outsourcing your IT services to India, there are some disadvantages that you will need to consider as well. Keep in mind that the cons only apply to companies that do not have a proven track record of success.

  • Credibility: First and foremost, the outsourcing company you choose must have built a reputation for providing excellent service. Their credibility is crucial to your success as only the best will do. Too many companies overlook this factor when searching for IT support that works for their needs.

Exhaustive vetting and a successful trial project are good indicators when choosing a reputable partner.

  • Language: Language has always been an issue with outsourcing to companies that do not speak English as their first language. This can lead to misunderstandings even if they can speak the language well.
  • Time: India is on the other side of the world compared to the United States or the United Kingdom, so time differences may be problematic in terms of speaking to management. However, most India-based outsourcing companies have taken the time difference into account.
  • Cultural: It’s important to keep in the mind the cultural differences concerning India and how your words and actions might be perceived. Of course, the culture of India may also present certain obstacles to the outsourcing company in terms of meeting your needs. However, this is generally a minor consideration unless there is something about your business that might conflict with the culture of India.
  • Law: For American and Canadian businesses, the system of law in India is based on old British legal system. While this is like Canadian laws in certain respect, there are differences in terms of contracts with employees as well as leases and other legal matters. For American companies, understanding the differences will be important before you sign any contracts.

Do not let the cost saving be your only guide. Instead, engage in proper vetting when trying to find the best IT outsourcing company in India for your needs. This means looking over the services that are being offered so that you can make the best-informed choice.

The good news is that your company can get top-flight IT outsourcing from India that not only saves money, but improves the overall performance of your company. The benefits when finding the right company go beyond the bottom line. It will reflect on your business savvy and reputation when finding the right company that can handle your IT needs in a cost-efficient manner.

There are many pitfalls when it comes to outsourcing so you will need to do your research and select the right partner.

If you are debating the value of hiring a company in India to handle your information technology needs, keep in mind that the benefits outweigh the risks by a considerable amount. However, this is only true if you hire the right company. There are many pitfalls when it comes to outsourcing that wind up costing your business far more than it can afford. So, you will need to do your research and select the right partner that offers the best benefits and cost saving approach which in turn boosts your bottom line, improves your services, and reacts quickly when something goes awry.

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One thought on “Is Offshore Outsourcing Beneficial For Your Business?

  • January 24, 2017 at 3:54 am
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    Good Article! Outsourcing is bigger every year. More and more US businesses are choosing Latinamerica, and Argentina specially, as the place they outsource operations to. And it’s especially true for companies in the IT and software sectors.

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