Building an offshore team takes time and effort, but its benefits are inimitable. The value and savings it offers a host organization makes offshoring a vital aspect of the modern global business model. In the IT industry especially, offshoring makes great economic sense, in addition to its several indispensable benefits. A forecast by the Hackett Group confirms that by 2016, 750,000 more jobs in finance, IT, and other key business services areas will be offshored. In Europe alone, around 1.2 million jobs will go offshore by 2015, according to a Forrester study. Even the Fortune 500 companies have been relying on offshore services to develop or maintain software—a report by NASSCOM and the Gartner Group has revealed that 40% of these enterprises are outsourcing varied aspects of their software development.
In the early 1990s, the offshore model began to catch the fancy of American enterprises simply because of the cost savings advantage; and although, at first glance, affordability appears as the only major driver for this choice, a closer look will reveal that the reasons are larger. Cost, in fact, has become just one of the many other important aspects of the offshoring practice.
Here’s a closer look at the all the benefits of having a dedicated offshore team:
The A.T. Kearney’s 2014 Global Services Location Index (GSLI) has discovered that Asia dominates as the most sought after offshoring destination. India is on top of the list and remains unbeatable, with all-rounder strengths—financial feasibility, talent pool availability, and positive business environment.
Many organizations worry that cultural and language differences and diverse time zones can cause operational difficulties, not to mention the fear of losing control over data and intellectual property rights. However, in India all these factors are suitably taken care of. Besides being familiar with western culture and style of working, Indian personnel use English on professional platforms, besides being able to work round the clock, giving your organization a head start in many ways. As far as data security and intellectual property rights are concerned, the regulations are highly stringent, with multi-level non-disclosure agreements that are internationally enforceable.
Running your dedicated offshore team successfully can be easier than you think. More importantly, its benefits are unsurmountable. Of course, communication keeps a team running smoothly; be it onshore, nearshore or offshore. While communication lines are becoming increasingly easy to set up, it takes real time efforts to make it effective. Engage with your offshore team and treat them like a part of your company. Challenging them and giving them the opportunity to display their skills will bring in the true essence of a partnership, making your offshore team a success and keeping them in line with your long term goals.