As you know you can systemise nearly everything but it usually depends on the priorities of the technology team at that point in time and the investment required. Hence offshoring can be a good low cost solution.
Lots of people talk about offshoring but have not necessarily done it or know where to start!
Following are some of the key points we learnt from offshoring certain roles:
1. Ensure you choose the right roles to move offshore
Only certain roles can be successfully moved offshore. These usually have a defined set of rules or procedures which are easily documented and followed. It is possible to split roles so some parts are completed offshore. It is really important to ensure that any roles you want to move offshore do not negatively impact your customer experience.
2. Chose the right Offshore provider
Once you believe you have some possible roles assess the different offshore providers available in the most suitable country. We found the best option was to ask around to get a good referral. Word of mouth is key!
3. Understand the Costs
It is really important that you understand the cost model that is being proposed as cost saving is a key part of the offshoring strategy. Is it cost plus, or an all inclusive cost? What does it include? Make sure you get additional discounts as you grow and also have a mechanism for handling FX changes. It is also really important to think ahead. What happens if you eventually want to run your own offshore office in the future? Can you take the team and at what cost? What happens if it does not work? What are the break costs?
4. Ensure you have well documented processes for the team to follow
Once the roles have been decided on, spend time to fully document the processes you want the team to follow. It should be a step by step guide for each part of the role, outlining decision points and where further guidance should be sought from management. This should include screenshots from relevant systems with clear explanations.
5. Invest time in training the offshore resource like they were your local team
This is an essential part of the offshoring process and can be easily dismissed with the team out of sight. With the use of Skype or Google Hangouts try to provide as much face to face training as possible.
6. Be aware of the cultural differences
There are a number of cultural differences between your Australian team and the offshore team that you will need to be aware of to ensure a smooth transition. In most instances we have found the team members are more softly spoken than the local team and will need prompting to ask for help or tell you if something is wrong.
7. Utilise the management team at the Offshore provider
Be mindful that the offshore team are both your team and employees of the offshore provider. The offshore provider should have a management team in place including HR who are there to help train and manage your team.
8. Make sure they feel part of the team and respected
Remember that the team offshore is an extension of your team back in Australia. Make sure you include them in team meetings, celebrations of wins and company updates. Make sure they feel respected and there isn’t a disconnect between the offshore team and the local team.
9. Ensure IT systems are compatible
It is critically important that you thoroughly check the speed and reliability of the internet connection. If this is no good you have chosen the wrong provider and your chance of success is low. Make sure that the offshore resources have access to suitably specified IT equipment. Ensure you have a capable IT contact at your provider in order to sort out any issues. It is also really important that you ensure your data is protected by limiting access rights.
10. Australian Holidays vs Local Holidays
Check what public and religious holidays will be honoured locally vs Australian public holidays. It is usually possible to align most holidays with Australia. It is important this is agreed and discussed.
11. Bad Weather Plan
As an example monsoon season in the Philippines can cause havoc with the transport system. Often employees may not be able to get into work that day. Ensure you understand how this is handled by your offshore provider to minimise impacts.
12. Office Space and capacity
Check the working conditions of the offshore office. Conditions need to be reasonable and make sure they have desk space, access to lunchrooms, toilets and whatever else you consider conducive to a good working environment. What capacity does the office have if you grow?
Hopefully the lessons above that the 3PF team learnt whilst setting up and using offshore resource can assist you to achieve a successful outcome. This is just one example of the hands on experience the 3PF team have that could benefit your business. We pride ourselves on rolling our sleeves up and making things happen for our clients.
If you would like to utilise 3PF’s exceptional commercial experience please do not hesitate to contact us for a chat.