And there must be a method by which contact can be made outside of that calendar when issues arise. And such technology allows for other “players” to be brought into those meetings on an “as-needs” basis. Whether you are an executive, IT manager, or other named project leader, you were the one who began this search for software development, and you are the one who must stay apprised of all that is progressing. And if you want the best advice on how to improve knowledge sharing in offshore outsourcing, it would be this. It’s an advanced content management system designed specifically for software teams. Use it to store and collaborate on all the project documentation, connect it with JIRA to receive automatic reports and updates and integrate shared team calendars if needed.

Provide them with feedback when necessary, but don’t get too involved in the day-to-day operations. This will help ensure that the project is completed on time and within budget. Finally, investing in training can help reduce turnover rates among your offshore team. By providing them with the necessary skills and knowledge, you create an environment where employees feel valued and appreciated. This will lead to higher job satisfaction and lower attrition rates. By setting clear expectations from the start, you can ensure that everyone involved in the project is on the same page and that there are no misunderstandings or miscommunications.

Create Local Leadership to Manage Offshore Teams

Whether it’s a third-party or a captive environment, there must be an agreement about the expected performance and the agreed service levels. So if the project scope changes, you need to change the contract. Once both parties agree to the new effective date and compensation, it becomes a part of the existing contract.

In 2002, when Lehman Brothers decided to offshore the development of some information technology–related processes, it identified lower costs, higher quality, and faster deployment of new systems as its goals. The investment bank drew up several metrics that allowed it to measure its service providers’ performance along each of those dimensions. However, the time the vendors took to develop new systems was below expectations. Not only was Lehman Brothers able to take corrective action, but its focus on continuous measurement also allowed it to quickly ramp up its offshore operations, both in terms of volume and complexity. By ranking all the company’s processes, executives can create a value hierarchy.

These are two different skills, and it is always better to have someone other than the originator check for errors. So make sure you have professionally trained quality assurance staff checking the work of the designers and content developers. This is perhaps one way to have the local and offshore teams work together. Development Handbook – this document may be presented by your offshore team or outlined as part of the functional list of product requirements.

Telecommunication Company & Wrong Choice of Provider

This is their way of sharing knowledge and improving the industry. Are you interested in the marketplace development trends of 2019 or IoT for business? If you find the content valuable, keep exploring the company’s website. You are likely to find a partner with the needed expertise in your domain. So, if you don’t want to risk it, avoid offshore companies from Asian countries such as India, Pakistan, or Indonesia.

Most companies new to offshoring assume they can and should keep the two teams completely separate. But experience has proven that setting up the offshore operation as a fully integrated extension of the in-house team actually works far better. Encourage interactions, collaboration, information and joint projects – just keep the roles and responsibilities clear as you do so.

Start with small tasks

Our research practices and procedures distill large volumes of data into clear, precise recommendations. Comparable to any partnership, the efforts in the outsourcing world can only be multiplied when they are made from both ends. And once all goes well, you can start outsourcing more significant and more lucrative assignments to them. A lack of a clear perspective, reason, and expertise can complicate the deployment process significantly and limit the savings potential.

However, if measuring the results is difficult, the risk of offshoring becomes very high. The best work is always done by people who feel encouraged and motivated in their job. Maximizing the effectiveness of an offshore team involves recognizing their efforts, contributions, and successes, as well as holding them accountable for roadblocks and problems. Make the effort to foster a good relationship with the offshore team, maximize engagement, and achieve major milestones and breakthroughs in a collaborated fashion for successful offshore software development. An offshore project should never be a select-and-forget solution – although it is good if your offshore software development partner can work independently, it is always a good idea to stay in the loop.

Success stories

By following these best practices, you can ensure that your offshore team is productive and successful. BackOffice Pro is staunchly adhering to international frameworks and practices for offshore outsourcing, ensuring that our legal and regulatory architecture for all processes is above reproach. Offering agile outsourcing services for core business functions, BOP is committed to abiding by legal outsourcing guides while streamlining the partnership process for our global clientele base. Contact us to know more about our offerings and discuss if you have any outsourcing requirements in pipeline. The global outsourcing market reached $88.9 billion in 2017, with India leading other countries in location and financial attractiveness, people skills, and availability, and business environment.

• People.ai develops the AI platform for sales teams, which requires rare engineering skills.
• The startup decided to hire IT talents with a special technology stack in Eastern Europe and started to work with several providers at once that resulted in…
• Determine how you will redirect resources if you decide to shut down the grand experiment.
• Creative services provide better brand representation in the form of design, content creation and other functions.
• Most companies believe that they must either perform processes in-house or outsource them.

Office Tiger has developed an information system, T-Track, to monitor the productivity and quality of groups of employees and, if required, the performance of each agent. Its clients use the system to ask for changes in agent assignments, to modify quality control mechanisms, and to alter project priorities. Crucially, Office Tiger’s agents and the investment bankers they support work in tandem. Both can see, in real time, the models and scenarios their counterparts are creating. They work off the same files, the same spreadsheets and data feeds, and, when necessary, they work iteratively.

Nearshore vs. Offshore: Differences Explained

Sure, the prospect of offshoring and outsourcing business processes has captured the imagination of CEOs everywhere. In the last five years, many companies in North America and Europe have experimented with this strategy, hoping to reduce costs, become more efficient, and gain a little strategic advantage. However, contrary to popular perception, many businesses have had, at best, mixed results.

Pick Roles to Offshore

This can ensure that no supplier knows the rest of the pieces of the puzzle, protecting your sensitive data. However, in case of any snags, each party should ensure responsibility for their actions. If there are issues that fall in a gray area of infrastructure and application management, they can collaborate to resolve the problems. You should opt for this offshoring contract if you have a long-term project requiring a lot of flexibility.

Due to different timelines and resource needs, a contract for call center offshoring will be very distinct from a software development offshoring contract. You also should be open to offshore development team members’ suggestions and feedback, as well as prepare yourself to give feedback regularly. If you aren’t ready to prefer one and only one vendor, initiate mini-projects with your finalists. Start a short contract to build a feature, fix a few bugs or any other job that needs to be done within your project. Signing this document can prevent data leakage and idea stealing.

No doubt, having a local partner means speaking the same language, living in a similar context and understanding each other at a glance. So let’s dot the i’s and cross the t’s on the difference between offshore, onshore, and nearshore development. Throughout the planning phase, validate decisions against these objectives.

A qualified PM schedules a range of calls to make sure that the team and client are on the same wave. In addition, an NDA will help you protect your user data and other https://globalcloudteam.com/ vulnerable information during the development process. “India may no longer be outsourcing hub as UK companies such as Aviva, BT & Santander move work to home country”.

Profile Professional areas include business structuring of tech companies in Eastern Europe, business & team management, leadership practices. The worldwide economic recession has forced companies offshore meaning in software to explore all options to increase efficiencies and cut costs. Companies are getting increasingly comfortable outsourcing larger parts of their businesses as they realize they are not core.

Give them time to get used to what you’re asking from them, then gradually assign more complex duties . Offshore software development is a great way to increase your competitiveness and save money on labour costs by outsourcing the project offshore. However, offshore software development can be difficult for some people to manage, as it brings many challenges and potential risks. However, you might not have the time to manage the remote workers. It will be critical to hire project managers to ensure offshore operations are following the company procedures.

Storage management should also be flexible, so that it can be shared between the outsource and onsite teams and on multiple devices. Buyers are never powerless, and they can hedge structural risks in several ways. When a firm negotiates a contract with a provider, it should specify a period after the contract’s expiry during which the provider must continue to offer the service at a certain price. As a rule of thumb, the buffer should specify 150% of the time that it took the provider to deliver output that matched the company’s quality standards. If it took 12 months for the vendor to come up to speed, the vendor must continue to provide the service for 18 months after the contract has expired. Lehman Brothers, for instance, has insisted on adding this clause to all its contracts with providers.

Structural risk also falls when companies have metrics to gauge the quality of providers’ work (see the exhibit “Evaluating Structural Risk”). The proliferation of the digital outsourcing industry in the last ten years itself intensifies the urge to use the outsourcing model as a business development strategy. On average, 300,000 jobs are outsourced by U.S. businesses each year and the global outsourcing industry amounted to $86.6 billion in 2018. Making a headway, businesses, and agencies, today, establish their offshore teams in preferred outsourcing locations like India, Philippines, and China.