In the 21st century, the real business world is suffering from a cut-throat competition. 

The battle is going on for survival and the entrepreneurs that make the right decisions on time are the ones that are likely to survive.

IT Outsourcing is one such decision that can become a deciding factor for the success of your business. It is a trending business strategy that is into practice since ages. And now it has grown big and promises even more benefits.

Some compelling benefits include improved expertise, long term cost reduction and higher productivity. When you calculate the ROI after outsourcing, the results are interesting. It helps you grow your business while saving time, resources and efforts.

However, before you make the decision to move the development process to an offshore country, it’s important to ask yourself following:

Is your Company Running Efficiently?

The cost of maintaining highly trained professionals combined with the cost of downtime may hamper the cost efficiency of your business. Quality service providers offer best practices while tackling solutions that combat business downtime. They keep encouraging enhanced use of tech and IT strategies while keeping you updated with the industry standards. They are not only running the engine but actively improving efficiency and functionality.

Have you done onshore and offshore benefits comparison?

Before hiring offshore developers, you should know how to compare between onshore and offshore. Ask yourself, ‘if we won’t hire an offshore developer and complete the project in-house, how much will the project cost?’ This cost estimation is certainly over the budget. 

Unlike the in-house developers who may take abrupt leaves delaying the project, the offshore team is responsible for the work provided to them. This results in productivity loss. Even if someone in the remote team isn’t working, there is a substitute taking care of your project. 

How Better ROI is Generated with Outsourcing? 

Helps in Controlling Cost

Maintaining an in-house team is a huge challenge that costs big bucks. A dedicated offshore development team turns your variable cost into estimated, fixed monthly invoices. 

You will get 24/7 access to the remote team of highly trained IT professionals using state-of-the-art hardware and software for IT project execution and system maintenance. It will also cut the cost you spend on expensive equipment and technology that soon becomes outdated after some time.

Let your collaborative offshore partner keep up with the technology for you and all that perfectly fits into your budget. 

In short, you get a clear picture of what the process is and how much it will cost you in advance.

High Productivity

Businesses outsource their work to free the internal team so that they can work on strategic projects or priorities. The dedicated IT team helps in two ways. 

• First, it carries the burden of inefficient productivity and overtime when the project is not properly managed. 
• Second, your in-house team can get back to value-added tasks.

Competitive Edge

Offshore companies have a strong experience of working on diverse projects and technologies. It gives you confidence that your remote team can take care of the challenges and will provide you the end solution without much hassle.

With this peace in mind, you can focus on the other strategies that can help gain a competitive edge and generate more business.

Maintenance of Business Ecosystem

IT has a high turnover rate and one common reason is the talent shortage. Turnover mitigation and reduction in training costs take place when you hire offshore developers.

Offshore developers provide a helping hand to the current ecosystem. If there is something that can’t be resolved in-house, the remote team will definitely help. If the hired developers are excellent in what they do, it can cut down the training cost as they will help your in-house team to upgrade with trending tech knowledge. 

A specialized company can focus a part of its budget on talent acquisition and retention. While some of that will be reflected in your contract, the direct cost is diluted particularly if your outsourcing company is good at what they do.

Simplifying Risk Management

Make sure your offshore company complies with the IT industry’s data protection and security guidelines. This is important because:

• Firstly, a non-compliant company is likely to be costly (cost penalties).
• Secondly, a remote team having security loopholes may put your company at risk, especially if data breaches take place. 
• Thirdly, ask if they have cybersecurity qualifications like CISSP and multi-factor authentication across every device. 

Most of the companies lack the resources to take care of the above points. That is not the case with an offshore company. The outsourcing firm has a proven structured approach to assess and develop a risk aware culture. And this further helps in mitigating risk related to outsourcing.

Realistic Calculations & Knowledge Growth

While outsourcing your project to an offshore development team, you gain a new financial leeway. This can be further explored to better equip core competencies with financial resources. 

Offshoring also helps businesses to take advantage of the competencies that a remote team can incorporate in the collaborative relationship. And all the credit goes to its wealth of experience in that particular area. 

Don’t forget to list all the company’s costs that will be reduced when the project is given in the hand of offshore developers. Among other things include, the office space rent, infrastructure, HR resources, leaves, reimbursements, etc.

Determines the Qualitative Factor

This helps in identifying a number of factors that can be easily compared in the cost-benefit analysis and quantified. If your evaluation in the financial service portfolio is positive this doesn’t mean that the ROI is going to be positive. If quality-related issues are present with the offshore development company, even the best cost-benefit model will fall down like a house of cards. Quality standards are ultimately proven in practice.

For this, you should carefully assess the quality of the service provider by giving them a small task before hiring. If the quality delivered isn’t upto the mark, don’t continue the partnership.

Do You Know What You Have to Do Next?

Plan for Change: Offshoring promises to change the makeup of your company, but it is important to pre-plan everything. Ask yourself, ‘who will spearhead the strategy? Will there be any effect on the existing team? Where will the cost-saving be used?

Test the Waters: Instead of outsourcing the complete project, start with a pilot project that requires less upfront investment. Great service provides are always flexible with your terms and strive to prove your worth. 

Define Success Yourself: Incredible offshore developers commit to quality performance standards. Decide priority metrics and KPIs depending on the service you are outsourcing. Hold the remote team accountable every week or month as per your needs. 

The Bigger Picture

If your ultimate goal is to evolve and expand, hire offshore developers and work with high-caliber professionals for less cost. 

After witnessing the aforementioned reasons, the best option is to consider outsourcing to generate ROI quickly. This will help you meet new challenges and deliver the project within a timeframe.