Offshoring
July 13, 2018

Intelligent Offshoring: The New Side Of Offshore Software Development

DigitalizationBlockchainIndustry 4.0Internet of Things, Technology, etc., all point towards one thing- INNOVATION. And that is what the new side of offshoring is doing. Intelligent offshoring has surfaced like a new kid at school.

The practice of moving jobs to distant countries having lower economies is now taking a new shape. The Intelligent offshoring has surpassed outsourcing which shows the companies that cost is not the only factor to look for while transferring your business processes to another country. The new face of offshoring shows how to hire teams which not only cuts costs but also provides a helping hand in incorporating innovation in their business.

The new face of offshoring has emerged from outsourcing, and both have the same roots. But intelligent offshoring is a completely different branch and works afar from outsourcing and can be applied to various offshoring models.

Intelligent offshoring harmonizes with the extreme shifts in the offshoring industry where the back-office functions like accounting and transcribing have been replaced by pioneering Research and Development centers.

We have created a synopsis which will work as a helping hand for the companies who are trying to shift a part of their business function out of the country.

Performance Assessment

This is a strategy of intelligent offshoring which basically helps to match the expectations of the client. During this process, the performance of a task given to the team is assessed in significant detail.

This becomes a way to execute a systematic performance measure and detect any inefficiency. This provides a good chance to rebuild structures, processes and procedures of an organization.

This process makes funnelling of the vendors easier because the expectations of the organizations are clearly laid down on the table. The organizations can expect services beyond the cost factor and discrepancy can be curtailed. 

Understanding The Domestic Market

This point swings somewhere in between accepting the external team and understanding the local employment market.

Hiring in-house employees mostly depend upon the supply and demand for the skills and employees in the market. This will differ from one country to another. To minimize risks, employers need to scrutinize the job market thoroughly and understand what entices the employees. Favorable commuting facilities, pensions, tax benefits, paid leaves, etc., are factors which may motivate the employees.

Gaining deeper knowledge about these aspects can help an employer decide how much work is worth delegating to offshore teams and how much work can be done internally.

Respecting Work Culture

With deep knowledge about the work culture of any external team can help a company execute their projects effectively. Work culture comprehends how a team is able to cope up with deadlines, how communication is managed and what different words mean in different languages. Gaining an insight on how tasks are carried out and objectives are achieved can reduce gnawing of information across the organization.

Innovation

Intelligent offshoring has also paved a way for product innovation rather than copying the current scenario of technology. This kind of offshoring focuses more on the client-vendor relationship to execute a long-term business relation.

The theory of ‘It takes two to Tango’ stands true for this point; both the client and the vendor works on creation and innovation together to develop a product which is exceptional and at par. Earlier, cost-saving and innovation were seen as different entities but the intelligent offshoring has managed to overcome that through this intimate relationship between the client and the vendor.

Examine Entire Value Chain

When a company offshores services, the cost-saving factor does not arrive in intervals but is present during the entire project from the beginning till the end. E.g, if an offshoring vendor offers a 70% savings in cost but there is a gradual weakening in the project in the later stage, the efforts at saving costs will go down the drain.

This strategy needs longevity. The objectives of the businesses continuously develop and many a time they cannot be predicted. The businesses need to fit themselves in these changing markets by amalgamating a flexible structure of business processes.

So, it is very crucial to evaluate the entire value chain rather than just some parts of it so that it doesn’t disorder the complete approach of the project.

The offshoring practice was once called ‘du jour’ (used to describe something that is enjoying great but probably short-lived popularity or publicity). But the scene is changing. 2.46 million students graduate from Indian universities every year and the best, highly qualified students are hired by the Indian companies. And, this has helped to carve a new face of offshoring.

Many people might think that vendors can either offer cost-cutting benefits or quality output, but never both. However, intelligent offshoring depends on innovation and the focus is more on the quality of the product rather than on cost.

All the aforementioned points highlight intelligent offshoring strategy. However, factors like openness, transparency and cooperation are also important factors for its unerring execution.