While implementing the plan of outsourcing (graphic design, logo design, flash design, web design and many more) and offshoring, a question arises about what will be the real cost and gains of outsourcing? This is something that worries those just beginning to outsource. On the basis of market survey it has been observed that 69% of companies outsource IT services.
According to the recent market scenario outsourcing growth is showing in the following way
It is important to realize something. The most important and basic developments are probably better handled onshore. In India labour wages are rising. It is no more a cost effective country as many companies have targeted India as their destination for offshoring. The outlook should be on long term strategy rather than a short term savings on labor cost.
Nowadays it is not easy to search talent in the offshoring locations. The motto of offshoring is to search for the talent pool and the ability to resize or swap providers fast. But it has also some drawbacks. The number of companies who want to offshore or near shore have steadily increased but the talent pool remains more or less the same. So the talent pool shrinks mathematically and the competitions among the companies have increases. This competition gives the workers chance to demand higher wages and to show less loyalty to the current vendor they are working for. This climate of boom helps to increase the workers’ confidence that there is no problem to find out the better job whereas the workers in domestic market tend to fear for their employment or job security. Offshore talent moves about with consideration for a better wages. Vendors or companies need a great amount of money to lure their workers by giving them a good amount of bonus especially for loyalty.
Hiring of workers, selection of vendors and quality control is really a tuff job for the organizations. Communication is also one of the main challenges. Maintaining communications across different time zones is really difficult. The system of working among different time zones hampers one’s family life, sleeping time and private time. So offshoring or near shoring in location of same geographical proximity may bring one solution. Another solution is to find a reliable vendor who will manage your business. Language issue is also a major problem. Style of speaking the same language varies from one country to another. For example, one American or one Indian does not speak English in same way. Mentality and practices related to culture are different in different countries. So it is necessary to train oneself and one’s team with cross cultural training especially for the working cultural environment.
