Offshore Outsourcing – The Positives and Negatives!

Published: 24th September 2009
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Business enterprises across the world are increasingly embracing offshore outsourcing and delegating their complex business functions to service providers located in offshore countries. In fact, offshore outsourcing has become a popular trend and is being heavily debated in the western countries, especially in the U.S. where majority of companies are outsourcing their processes. There are positives as well as negatives to the concept but when you evaluate both the aspect, you see that the advantages outweigh the other.

Offshore outsourcing has become highly significant in the present times of economic recession. This is because businesses are looking forward to explore new ways to reduce their expenditure and maximize their leaning profit margins.

Recession has caused companies around the world, especially in U.S. to device new survival strategies. And offshore outsourcing has proven to be the best way to combat its implications. However, companies who outsource their work to offshore service providers need to take time out to evaluate the potential service providers in order to prevent any future problems and make sure that the outsourcing project is successful. There would always be risks associated with offshore outsourcing. However, you need to do careful planning in order to prevent these risks and make sure that the benefits are greater than the potential harm. Spend quality time to select your service provider - one that understand the specific needs and requirements of your project and has relevant industry experience as well. The success of the offshore outsourcing projects depends on your choice of the service provider.

Companies that delegate their IT projects to offshore service providers expect to make huge savings in their operation costs because of the cheap labor rates. However, certain service providers lack the structural integrity for the same which can result in the loss of crucial business data stored in your system. And you cannot even hire more programmers to set it right, because their salaries would go beyond your designated budget. And this makes the very purpose of the outsourcing project futile. Instead of saving, you would end up spending more in completing the project. The solution is to look for a service provider who is transparent in its dealings. Make sure they deliver quality outputs and provides security for your critical data. In addition, they should be benefit-oriented and have relevant experience in handling complex projects. Do research about their previous work and clients and see if they are capable of bringing your project to successful completion.

Another great barrier in the successful completion of offshore outsourcing projects is that of language. Often, the service providers are not well versed in the language used at the clients' place. And complex outsourcing projects generally need thorough instruction in order to achieve its goals. And instructing the programmers become a difficult chore in such cases because they typically have a different grasp of English language. Therefore, make sure you have high level technical interviews with the professionals who would work on your project. This way, you have gauge their grasp of the language and make them understand what you want from the project.

Maneet Puri is the director of LeXolution IT Services, a eminent KPO outsourcing company that deals with a variety of KPO services. Some of the popular services offered by the company are internet research, mailing list development and virtual assistance.

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