Aspects Of Offshore Outsourcing That Everyone Should Be Cognizant With

Do you know what offshore outsourcing is? It is a concept wherein a firm meets its

business requirement by hiring specialized professionals and experts from a service provider who is located in a different country. Although it is now prevalent in almost all types of industries, one of the most common forms is IT outsourcing which is concerned with looking for technology solutions. Companies resort to this tactic due to the many advantages which it accrues vis--vis the cost involved but there are other aspects to it as well which the users need to be aware of.

Since offshore outsourcing entails hiring employees in a different country, one of the first priorities should be to find a suitable country wherein a provider could be identified. This entails checking the laws of the country and ascertaining whether they are compatible in terms of entry, exit and long term partnerships. Every country runs according to its own set of laws in fields such as trade, tax, patents, copyrights and so on and checking these out prior to signing a contract is absolutely imperative. In case of IT outsourcing the emphasis is on rules governing the field of technology.

While it is true that every project runs a certain amount of risk, this percentage has been found to be particularly higher when offshore outsourcing is undertaken. After all, if your ambition is to expand or diversify in a new country, then you should be prepared for the huge difference which is not just limited to time. Some of the differences which would most likely impact the day-to-day functioning of your flagship would be language, work culture and mindset of people. Particularly pertaining to IT outsourcing are risks like quality, life-cycle of the project and transfer of knowledge.

Assuming that you have made known your intention to go ahead with offshore outsourcing or IT outsourcing, it is just a matter of time before you will soon be required to choose a provider. Thorough evaluation is the name of the game and while SWOT analysis constitutes the first step it needs to be followed by other parameters like reviews, testimonials, preparedness and key competencies. Among other aspects, one which needs to be scrutinized on a priority pertains to the internal management of the provider, specifically policies related to hiring and training of employees.

Everything requires a certain amount of background preparation and offshore outsourcing is no exception to this rule. Given the fact that security issues of the provider become apparent only subsequent to hiring and commencement of the project, the onus is on the parent company to establish firewalls and monitor gateways. Sometimes the project may have sensitive data and the only way to protect it during IT outsourcing would be to formulate a rule of privilege which in addition to protecting data will ensure privacy as well.

Last but not the least would be the ethical implications pertaining to offshore outsourcing since it entails channeling of income to citizens of other countries at the cost of ones own. However, many businesses go ahead with outsourcing simply because it adds to their efficiency and is more cost effective in the long run. Quality may be an issue but this can be sorted out through careful selection and as proved by IT outsourcing. The only real issue is communication and this requires usage of a universal language which people all over the world are comfortable communicating in.

by: Sharon Evans

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