Perhaps you’re looking to cut labor costs. Or maybe there’s a particular set of skills you need but can’t get access to. Whatever your reasons, delegating these tasks or services to providers in another country can be a good idea. That’s what’s generally called offshore outsourcing.
This decision comes with a basket of goodies. You get to cut operating costs, access global talent, maybe even scale operations. But it is not without its risks. That’s why you need to be very keen if this is the path you choose. This guide will bring to your attention some best practices to keep in mind should you decide to go down this route.
Define Clear Objectives and Expectations
Before you even start looking for a vendor, sit down and ask yourself: What do I want to achieve? Is it labor cost savings, faster turnaround times, or access to specialized skills? Be specific.
Once you’ve defined your goals, document them. Create a clear scope of work (SOW). It should include key performance indicators, timelines, and quality standards. This step helps you avoid misunderstandings as everyone’s clear on their roles from the word go.
Choose the Right Partner
This is where many businesses lose their footing. They either go for the cheapest option or pick an external provider without doing enough homework. Start by researching potential vendors. Look at their track record. How long have they been in the offshore outsourcing business? Do they have experience in your industry?
Next, check references. Ask for case studies or client testimonials. If possible, talk to their past or current clients. Did they deliver on time? Were they easy to work with?
This whole process can take a lot of time and resources. But it doesn’t have to. Not when you can hire Remote Employee or other organizations that have a track record in this industry and let them do the groundwork for you instead. These pros can help you pick out the perfect candidate, and handle everything else for you, including payroll and taxes.
This way, instead of spending your time and resources chasing after talent all over, you get to focus on taking your business operations to the next level. That’s a win in any book.
Invest in Relationship Management
According to CEO of Atmosera, if you’re looking to redefine what’s possible, you’ve got to create a perfect blend of modern technology with human expertise. And that’s exactly how you should approach outsourcing—by focusing on collaboration, not just delegation.
Start by treating your offshore team as an extension of your in-house team. Include them in your company updates, celebrate their wins, and make them feel valued. This fosters loyalty and encourages them to go the extra mile.
Regular feedback is also key. Don’t wait for the annual review to share your thoughts with the offshore team. Provide constructive feedback regularly, and be open to receiving it too.
Another way to strengthen the relationship is through face-to-face interactions. If possible, visit the offshore team or invite them to your office. This builds trust and helps you understand their working environment.
Focus on Data Security and Compliance
When you’re outsourcing, you’re often sharing sensitive data. If that data falls into the wrong hands, it can lead to serious consequences for your business.
To mitigate risks, ask your vendor about their security measures. Do they use encryption for data storage and transfer? Do they have firewalls and intrusion detection systems?
Next, sign a non-disclosure agreement (NDA) and include data security clauses in your contract. These documents legally bind the vendor to protect your information. Also, consider conducting regular security audits. This is where you or a third party reviews the vendor’s security practices to ensure they’re up to standard.
Finally, have a backup plan. What happens if there’s a security breach? Make sure your contract outlines the offshore team’s responsibilities, such as notifying you immediately and covering any damages.
Establish Effective Communication Channels
When you’re working with a team in another country, communication isn’t always straightforward. Time zones, language barriers, and cultural differences can get in the way if you’re not prepared.
First, set up the right tools. Think along the lines of instant messaging, video calls, and project management tech. These tools help both your offshore team and house teams stay on the same page, no matter where they are.
Next, schedule regular check-ins with the skilled workforce. These don’t have to be long—just 15-30 minutes to review progress, address concerns, and align on business goals. Finally, assign a point of contact on both sides. This person acts as the go-to for any issues or questions.
Closing Thoughts
Offshore outsourcing comes with many benefits for your business. However, as this guide has laid bare, it’s not something to approach blindly. Keep these best practices in mind and engage outsourcing companies who’ve cut their teeth on it. This increases the odds that you get the best offshore partner who’ll fit your business needs and budget.