Offshoring has become a hot topic and it’s not hard to understand why. The rapid rise in offshoring has created significant opportunities for companies to improve the efficiency and reach of their organizations. Today, it is seen by many as one of the best ways to reduce costs and expand operations. But is this really the case? Many companies have discovered that offshoring isn’t as easy as it sounds. Sure, it has the potential to serve as a strategic advantage, but only when done right. Rather than avoiding offshoring due to its mounting complexity, use these tips to optimize your approach.
Develop Value Hierarchies
As a business leader, you probably know how your current processes create value for clients. However, you may not know enough about how this applies to offshoring. To keep your customer base happy and take advantage of offshoring, you need to create a strong value hierarchy.
The first step is to identify the processes that are most critical in ensuring a great customer experience. Of course, this will depend upon what type of business you own and your specific industry. The more essential a process is, the more value it has. Processes at the top of your value hierarchy might not be the best fit for offshoring. When it comes to offshoring, simpler, less valuable processes are the better option. That way, you can still foster enhanced productivity without compromising the customer experience.
Understand the Risks Beforehand
Some businesses make the mistake of choosing offshoring without weighing the risks. Being aware of potential problems before they become problems will put you in a better position to succeed. Here are a few things that could go wrong when you outsource services overseas, for example:
- A sharp increase in prices when contracts are due for renewal
- An unexpected drop in quality when vendors stop investing in training
- Lack of business metrics in place to measure your success
- Increased frequency of customer complaints and cancellations
To avoid risks like these, it’s always best to have a firm handle on your processes before you decide to offshore them. You’ll gain a deeper understanding of how they should be run offshore when you optimize them in-house first.
Consider Joint Ventures
Few business owners are aware of all the options at their disposal; they’re too busy running their businesses! We’ll let you in on a secret: managing all your processes in-house or offshoring them is not a binary choice. There are plenty of other possibilities, such as entering into a joint venture with another business. From there, you can always customize and fine-tune your approach. If the risks decrease over time, you may be able to use offshoring for some processes. It may benefit your company to try a few different methods first. Ultimately, however, you will serve your business best if you do what works for your customers.
Why Should You Partner with 1Rivet?
We offer various options for both offshore and offshore/onshore blending based on your preferences. For a price estimate, don’t hesitate to contact us. 1Rivet’s core foundation is ensuring client success, and we make sure to deliver value and quality work as a strategic partner to our clients. For more information on offshoring, please email us at info@1rivet.com.
