March 15, 2017 5:51 pm | Updated 1 year ago.
D2e takes a walk through some of the common myths associated with IT Offshore Outsourcing.With the digitization process in full swing, more and more organisations are planning to opt for outsourcing of some its work related to IT. This also provides them an opportunity to concentrate on their core business processes. IT offshore outsourcing comprises of a series of functions related to IT that can be send to an offshore outsourcing vendors at a different location. In an era where everyday a new technological innovation challenges our thinking, D2e tries to delve deep into the entire gamut of IT offshore outsourcing to demystify some of the illusions associated with it.
Illusion 1 : Companies adopt Offshore IT outsourcing to cut cost
The initial reason organisations adopted outsourcing as a business process was to reduce cost and leverage the benefit of labor cost arbitrage. This was done mostly by American companies who envisioned on saving money that can be used towards developmental work in the business. But this strategy did not help organisations in the long run.Customers like to pay for the quality of service provided to them. Better the quality better the price.Organisations these days opt for IT Offshore outsourcing to add value to the deliverables. With the rapid rise in automation in every sphere,IT Offshore Outsourcing organisations are equipping themselves to provide high quality services and solutions.Companies are embracing new technologies like cloud,IoT and big data analytics.
Illusion 2 : Cultural differences have no effect on outsourcing deals
Communication is an important element for any partnership to prosper. Experts believe that many outsourcing deals fail because the parties involved are not able to understand each other. The main reasons are unclear goals,cultural diversity and distance that translates into poor performance. Organisations fail to communicate their organisation goals to the vendors which leads to lower efficiency and decreased innovation. Most often poor communication leads to bad handling of projects which in turn paralyzes the overall capacity of the organisations.
Illusion 3 : Clients aren’t able to control the performance of offshore outsourcing vendors
This is again a myth that the client is unable to exercise control over an offshore outsourcing vendor. A proper contract followed with check points in place at various stages will help the client exercise more than necessary control over the outsourcing vendor. Technological advancement has made the world into a global village and information exchange between the client’s and the vendor’s team has increased manifold. Proper control can be easily ensured if at the beginning a proper contract has been formulated keeping in mind all possible scenarios.
D2e is a one stop platform which provides end-to end solution to IT offshore outsourcing with the help of its client service partners like Sword and Affinity to cater to clients situated in the USA and UK. Their expertise lies in assisting clients to strategise, formulate and structure contracts and ensure a smooth flow of information between the client and the IT Offshore outsourcing vendor.