Outsourcing is trusting a team in another country, having their own rules, language and their own way of working with your business or at least part of it. It’s cost-saving and the benefits seem many… in theory.
The practice has shown that outsourcing is just not always meeting the quality requirements you’re expecting. These outsourcing disadvantages can be easily overcome:
1. Communication issues
Communication is key in your projects: for your current team and for your extended team. And because you know how important communication, trust and governance is, you demand guidance in project management and you always ask for an exit clause.
Make sure language, cultural differences and other communication methods like the IT ticketing system don’t interfere with the eventual outcome of your project or cooperation.
You will be communicating in English. This implies optimization of your communication but just as well of all the relevant documentation.
To make it a lot easier, we usually implement the Scrum methodology. This is most adequate for nearshoring in our experience. Daily stand-ups and quick feedback inform you at any given time about the status of your project and solve the majority of outsourcing disadvantages.
2. Cultural barrier
Offshore IT outsourcing equals another way of working. The mindset of the people in your extended team can result in more dependency on your people. In other words: your people spending more time explaining how things work instead of actually getting work done.
Nearshoring partners in European countries usually have a similar way of working as your own people’s.
Cooperating with teams in Ukraine, Spain (Malaga), Portugal, Morocco, Mexico is a strategical choice. Each country has it’s own specialities. Partnering up with native experts in local companies who are skilled in looking for adequate resources, in development, testing, senior profiles, management, team leads has proven its advantage. These countries are a talent pool for the scarcity of resources in your own country.
3. Data security risks
You don’t want the extended team to get a hold on your company’s data. Legally, IP (Intellectual Property) security risks are important to take in account when you consider outsourcing.
If you’re working under particular patents or other protected rights as a firm, there’s a possibility that local authorities or an internal employee were to violate that patent and reverse engineer or steal the proprietary technology.
To avoid these outsourcing risks the partners you work with should be able to maintain the same high security standards as the ones in your local offices.
It’s important for your business to stay cognizant of specific laws and regulations. Opt for a safe and effective technological partnership. Some nearshoring regions may therefore be advantageous if they fall under the laws and regulations of the EU and your business is headquartered in an EU sovereign nation.
A well researched nearshoring plan can go a long way in preventing unwanted incidents regarding physical and IP security.
Seek guidance in this process so you can assure a positive impact on your reputation, product quality and even timeline for deliverables.
Interested in your own European extended team?