Outsourcing

Building An Extended Team Offshore

It’s no secret that being able to find the right people is one of the critical elements that will help a startup succeed. Also, finding and hiring the right resources can be a challenging task, especially when it comes to limitations in a local talent pool.

Of course, you can always find offshore workers and outsource the work completely. But, when you already have some technical expertise in-house, but you need to augment it with more experienced individuals, then an extended team model is a way to go.

What Is Extended Team Model?

An Extended Team Model brings together remote workers and on-staff members to collaborate and accomplish tasks with a high-quality output. In fact, most tasks were typically handled by in-house team members in the past. Today, businesses are increasingly focused on implementing the extended team model.

If you opt for an extended team, you are getting workers with a high level of expertise who are able to work seamlessly within your budget. There are so many experienced and skilled workers who are eager to work for international companies or businesses, so they are much motivated and determined to provide high-quality services.

Offshore Outsourcing is more like a business strategy involving finding and hiring offshore workers to work for the business or organization. When a business or an organization does not have the required expertise to handle a project or does not want to invest a large sum of money in it, using an outsourced solution is a cost-effective option.

How To Build An Extended Team Offshore?

As mentioned earlier, building an offshore team is beneficial to any business, either in successful businesses or startups. The advantages of having an extended offshore team are numerous. One of them is that it enables the team to work under an optimized environment, which means they can develop faster. Another benefit of having an extended offshore team is that it cuts costs by not spending on additional facilities and utilities since these are all set on the offshore partner. Additionally, having an extended offshore team allows the business or organization to continuously improve its technical expertise and knowledge preservation, which is typically acquired during the lifecycle of the project or work process.

Furthermore, working with an extended offshore staff allows access to the latest technology and skilled professionals from different parts of the world, who are more motivated and dedicated to delivering the best service possible according to your business’s mission and goals.

If you’re thinking of extending your workforce offshore, here are a few tips for you:

1.    Perform a Pre-screening For A Better Service Provider

This step is crucial when hiring a better company or service provider. This process involves gathering important information about the service provider, such as asking for a CV, which you can use for screening. Upon gathering the information, then you can decide which or who to hire to work for your business. Doing this step effectively can also help the business save money and time.

2.    Explore Potential Business Models

It is wise to consider the different factors involved in hiring an offshore staff or building an entire offshore team. Since many service providers in the offshore industry charge a reasonable price, it is important to consider the cost-effectiveness of their services. The most important step in building an extended offshore team is to find one who is ready to provide the best possible service that’s within your budget. You can ask for multiple quotes and ask for hidden costs. You can also consider different billing models such as monthly, bi-monthly, and hourly. India and the Philippines are some of the best countries to source your extended offshore workers. You can find the best possible workforce at a low cost compared to other countries.

3.    Start With Smaller Engagement

When you’re starting with an extended offshore team, it’s a good idea to begin the project or work with a small engagement with the offshore team. The main purpose of this is to familiarize them with your business or organization and other team members. Much better to use a common language to make your communication more simple. This will help your offshore team understand what’s going on and what do you expect from them. Also, this will help you to get a better understanding of the capabilities of the team members, the quality of the work they deliver, their work ethics, and so on.

4.    Assess Results

After the initial engagement, it’s time to decide on the right setup to seamlessly make your offshore team work. This step should be taken seriously as it can lead to wasted time and resources. Building a wrong set of an extended offshore team can also cause issues with training and recruitment. When you assess results, make sure to consider based on your business requirements, the team’s work experience, attitude, and many more factors involved.

5.    Use A Proper Software Tool

After building an extended offshore team, it’s important to start thinking about how to manage and control your projects and the work involved. You can easily get this done by having a project management tool that will allow you to monitor and share your ideas. The right solution will allow you to organize and track all of your projects, and it will also allow you to schedule tasks and communicate with team members.

Conclusion – Start Building Your Extended Team Offshore

When building an extended offshore team, make sure to follow the following tips mentioned above. Doing so can help you build a successful team and avoid having many challenges in the future. If you want to create a great working environment, make sure that you allow your team to be autonomous and contribute to the business’ decisions. Doing so can help improve the quality of work and operations. So, find the right partner and start hiring your offshore team at any time. Inquire at Disruptive Advantage (DA) Resourcing and work with a skilled and professional offshore team globally!

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Outsourcing

5 Important Factors To Consider Before Deciding On Outsourcing

Either small or large organizations resort to outsourcing their business processes or functions. They outsource most of the business functions or some processes to focus more on the core business aspects.

In fact, one effective way to maintain profitability is through outsourcing. This strategy allows you to streamline costs, improve productivity, and reduce risk factors while implementing flexibility to your business development model. And that’s the reason why global outsourcing has continued over the years.

However, the benefits of outsourcing are not automatic as many would have imagined. A successful outsourcing engagement can be achieved depending on many factors, such as the right service provider. Before adopting an outsourcing model, factors that affect the success of an outsourcing project can also be considered.

What Are The Things You Should Take Into Account?

Before jumping into outsourcing, it is crucial to consider the following factors:

1.    Reputation Of Business

Due to the scrutiny that businesses face, it is vital that they regularly maintain the highest possible standards. Doing so can help preserve their reputation and avoid making the biggest mistake they ever make. It’s also crucial that external processes are regularly maintained to ensure that they meet the highest possible standards. Not taking the necessary process to ensure that your reputation is protected before the outsourcing model begins can be the biggest mistake you make.

For instance, if a call center is outsourced, but the customer service is not as good as it should be, it can easily lead to a backlash from consumers. But, when it is outsourced efficiently, customers rarely notice that they are not speaking to an in-house representative, which is a good sign. And this applied to all external processes. Outsourcing may have lower operating costs, but once the service level drops, the cost of rebuilding your business reputation is much higher than your initial savings.

2. Collaboration and Communication

Unfortunately, outsourcing can also present unique challenges to any organization. For instance, some of the issues that arise when dealing with outsourced support may be caused by the time difference between different time zones. Also, if you are using a provider with different work culture, communication barriers may arise. Regardless of the reasons why you choose to outsource, the communication barriers that may arise are usually due to the differences in culture, language, and time, especially if you decide to outsource in an off-shore location.

So, when you consider outsourcing, important components should be in place to ensure smooth communication and collaboration. Flexibility is an important factor along with reliable communication avenues, which everyone in the organization can reach and communicate with one another easily, either via e-mail, phone, online groups, video conference, and so on.

3. Cost-Efficiency

Most of the time, an increase in profit margins is achieved by taking advantage of the efficiencies of outsourced processes. However, this approach can be very costly if the wrong processes are used. Outsourcing certain tasks, such as payroll management, can help companies lower their costs and increase efficiency.

But, always remember that the business’ core activities must take place in-house as the required knowledge level will be found win-house and should remain at the center of the business. For example, if Google decides to work with a third party for its search algorithm development, it would be risking losing its competitive advantage. This aspect is true for all kinds of businesses, regardless of size and nature.

4. Innovation

Many businesses aspire to transform their offerings and become more innovative, but these goals can be hindered by their internal constraints. Considering outsourcing innovative software development processes can help organizations overcome these constraints. Doing so can allow them to step away from their traditional approaches and develop something new.

When done right, identifying a new market and developing an innovative product or service can be lucrative. Doing so will allow a company to quickly become the industry leader. But, if a business doesn’t do this correctly, it will be left behind in the competition, and that’s how crucial innovation is.

So, the right outsourcing partner can help a company achieve its goals, but it should also be able to adapt to the changes brought about by the business.

5. Pricing Value

Implementing an outsourcing model can lower a business’s operating cost, especially labor. For example, the average rate of an entry-level worker in the India is around $1.50 to $2.20 per hour. 

Assume that labor is kept at 15% of revenues, then the hourly cost of services would be around $10 to $15 per hour. If you try to lower the rate per hour, that result in a raise in labor percentage may be up to 21% of revenues. In order to remain profitable, the outsourcing provider has to make some changes in its operations. So, be reasonable when it comes to negotiating the pricing. Doing so can help avoid getting bogged down in trying to get the lowest possible price.

Bottom Line

These are just a few considerations that every business should take into account when you’re considering outsourcing business functions. Also, these factors will play an important role in helping you decide which outsourcing provider you should rely on in achieving your business goals while maintaining and improving profitability and productivity, which is crucial in any business.

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Outsourcing

What Costs Can You Save Moving To Offshore Outsourcing?

Businesses adopt lean mindsets to lower their operational costs while increasing their expertise. Using an outsourcing model, they can hire the exact individuals they need for a specific role or goal. It allows them to fill positions that they would not be able to find in their in-house workforce. It will also enable businesses to hire people with the skills they need without spending a large sum of money on hiring a full-time professional employee.

If You Want To Cut Down Costs, Then Offshore Outsourcing Can Be The Best Option

One main reason to opt for a remote employee is to cut costs. In fact, offshore outsourcing is way cheaper than hiring an in-house employee. The money you saved from moving offshore outsourcing can be put towards expanding your business in other parts.

We all know that there is a rise in freelance workers globally, who are eager and dedicated to delivering high-quality services at a meager cost compared to comparably-professional full-time workers. By outsourcing some of your business processes, you can now have more room to hire full-time employees in-house to work for the core functions of your business, which you can’t outsource. This way, you can definitely cut down costs, yet you utilize a skilled and experienced workforce, which is an essential factor in achieving business success!

So, if you opt for offshore outsourcing, you can:

Hire experts. You’ll find freelancers or service providers that specialize in what you need to do, so you can pay more attention to growing your business or organization instead of wasting time with mundane tasks.

Get more outside perspectives or ideas on your business. One important benefit of offshore outsourcing is that it gives you more chances to get vital information and data required to run a successful business or organization. Let someone else run the numbers for you. They can then compare the data to see where you need to improve and how to go about it. Additionally, you can get an insightful analysis of how your business is performing, which is a great learning opportunity.

Avoid stress and burnout. Saving money by running your business alone or with a limited workforce is not the best thing to do! It can lead to longer work hours, increasing the risk of stress and burnout. Working too much can quickly lose passion in you. So, it’s a brilliant idea to outsource some work, which will help you reduce stress and burnout while maintaining your business operations.

Overall, in offshore outsourcing, having the chance to work with experts can give you a high probability of keeping your passion for your business. When you hire an offshore staff member, you can cut back on costs, allows focus on core business functions, and you can still use your workweek more effectively.

What Are The Best Roles To Outsource Offshore?

There are several roles that a business can outsource offshore, so it is crucial to understand your business needs and requirements before you consider what outsourced role could be beneficial for you.

Tasks that require much time but do not need high-level decision-making are typically the best option for offshoring. And projects or tasks that require frequent interaction between team members are typically best left onshore. If done properly, an outsourced role can make a huge impact on your business. So, frequently outsourced roles include:

  • Administrative Tasks
  • Accounting
  • Customer Service
  • Marketing
  • Human Resource
  • IT Management

If your business incorporates the roles mentioned above, then it’s time to consider offshore outsourcing. Of course, every business would want to cut down costs, and that’s what offshore outsourcing can do for you as long as you have the right team members.

Advantages Of Moving To Offshore Outsourcing

Depending on your business situation, it always makes sense to outsource offshore. The expense of hiring a full-time or part-time employee can also add up. It will take some time to find and hire the right candidate, and it comes with a lot of overheads.

Offshore Outsourcing is ideal for start-ups and SMEs that don’t have the capacity to hire much staff. It is also flexible, allowing businesses to increase or decrease their capacity at short notice.

Moreover, your business can also benefit from economies of scale. For instance, as for SMEs or start-ups, they can only afford junior team members. But, once they implement offshore outsourcing, they can get outsourced service provided by an experienced and skilled service provider at the same cost or even lower.

More importantly, your business can explore new areas or grow into new markets through outsourcing. You can test the process by outsourcing some service offshore, and then if it succeeds, you can adapt the function onshore.

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