Outsourcing relationships are like marriage; it takes a lot of effort from both parties to make them work and last long-term. Some reasons for the derailment of an offshore relationship are as follows:
Mismatched Expectations
Clients expect to save money starting on day one, when they retain an offshore company. Offshore suppliers are eager to please their newly retained client and promise everything that is asked for. Both end up incurring start-up costs such as documentation, travel, hardware, software, requirements gathering, etc. etc. which were more than likely not understood and therefore not planned for.
Missing Documentation
Most companies lack thorough documentation of in-house processes. In such cases, the client expects the offshore vendors to create new documentation. The offshore vendor (who hadn’t planned on this activity) attempts to create the documentation but cannot find historical data or adequate time with subject matter experts to get everything documented.
Communication Gaps
Although offshore vendors in India have an English speaking staff, cultural nuances create language barriers between the client and the offshore vendors. Something as simple as “can we get this done today” may result in a “yes” from a person in India however the client may find out later that the request wasn’t fulfilled because the yes meant it would be done but the urgency of the timing may not be understood.
Oversight and Management
It is important to be in constant touch with your offshore provider. Talking to them via phone everyday is extremely important. Frequent travel to oversee the operations and to meet your offshore team face to face is also extremely critical to ensuring that you receive quality, productivity, and efficiency from your offshore supplier. Don’t just rely on phone and chat to conduct business with your offshore provider, be sure to set up a travel schedule frequent and also provides adequate time for some thorough discussions with your offshore team.
Performance Measurement
Contractual agreements should include metrics and measurement criteria to measure the performance of your offshore team. Metrics should be detailed to the nth level so that there is no confusion of what is being measured and where the vendor may be not making the grade.
To summarize, offshore relationships can be made to work. Our expertise is in establishing and implementing successful offshore relationships. Contact us today to learn more about our services.