More and more businesses are turning to offshoring to maintain optimum operations. Research from Macquarie Securities estimated that about four in every ten Australian companies have expanded offshore in the past few years, achieving significantly better earnings since, having a higher growth rate overseas than when the business remained home. Software offshoring is no longer just for large corporations—with today’s advanced technology and highly competent global talent, it also benefits smaller companies. As this trend continues to flourish, maybe you’ve been thinking of offshoring some components of your business to a third party provider.
You’ve probably thought about offshoring, even weighed the consequences of this potential move, but you’re still not certain of the appropriate time to do so. The following are signs that should inform you that offshoring is a viable option for your company.
1. When you’ve wanted to pursue growth you have no time and manpower for
One common mistake small businesses commit is thinking that they can do everything themselves to save on costs. While doing so may be a feat, it tends to stall the growth of the company as it tries to do countless things instead of focusing on efforts that would generate more income and impact.
If you’ve thought about outsourcing particular tasks such as bookkeeping or social media management, and positions such as web developers and virtual assistants, offshoring is a good option as it releases you from tasks that may be too repetitive. You could also rely on higher-level IT support to take care of your online needs. Once you’ve realized that you do not have the luxury of time and available talent to focus on certain projects, it might be time to consider offshoring.
2. When you’ve done a cost-time analysis
As labor costs are likely to be cheaper overseas, it might be a better option to outsource certain tasks if a provider can deliver in a timely manner. An employer could invest in very little to achieve the same results or better than if the job stayed domestically. Any improvement would be welcome in any company, and sometimes it means migrating the job into another country to give it room to grow, allowing your company to continue expanding its reach.
3. When you’ve decided to face the challenges of offshoring
When you’ve assessed the difficulties and benefits of offshoring, you’ve determined that the differences in culture, language, and time zones are not really an issue. In today’s world where most people speak the same language, especially in a thoroughly professional environment populated by knowledgeable and experienced individuals, the adjustment period may not take long. As long as you set the kind of office culture that mirrors your own in your home country, there wouldn’t be any problems.
As an employer, it is in your realm of responsibility to set clear goals and milestones with your contracted provider and offshore team. It is important that your team works in the same capacity as if they were your team in-house. You should also be aware that there may be difficulties in communication as you do not get the opportunity to converse with your team personally, but this is something that can be solved easily as long as you allow a clear exchange of ideas among your staff. Releasing yourself from the lower-level operations is an intelligent investment as it stops you from micromanaging and lets you take a step back and manage on a strategic level. You should also remember that if you want to have a premium product and service, you have to pay a premium price.
When done right and at the right time, offshoring becomes a competitive edge. Businesses gain more freedom to concentrate on what matters and steer the company where they need to be. At Innovent Software we help Australian companies connect with high-value, professional Filipino software developers and partner with them to establish their offshore teams in the Philippines. We know that smaller companies augmented by a team of excellent global talent can significantly improve their performance and global standing. If you’ve given software offshoring a serious thought, perhaps it’s time to take the next step by talking to a reputable software offshore service provider who can walk you through a more sustainable business model.
For all your Offshore Software Development needs contact Innovent today on 1300 781 681 or firstname.lastname@example.org