Offshoring Q&A

Q: What's the key to successful offshoring?

A: IMHO, The cornerstone of offshoring success lies in two aspects: crystal-clear communication and robust documentation. It's about creating an unambiguous statement of work and setting strong metrics that are easily understood and measured. This clarity is vital, and if you can culturally align, then even better (watch out for cultural misalignment, that is a whole other article and I would highly recommend spending some time reviewing. Drop me a line to discuss).

The role of a strong operations manager at the offshore location cannot be overstated – they are crucial for making it work!

Q: Can you share an example from your experience?

A: Certainly. At Patchworks, I built a BPO support team in Manila via the DevTeam - handling payroll, HR, EOR, managed facilities, and more. It streamlines operations effectively. In contrast, at Prodigious, I managed dedicated teams in Mauritius, Costa Rica, and Colombia, enabling around-the-clock development but requiring constant attention. Both models have their pros and cons, but the common denominator for success was effective management and clear communication lines. (Contact me to talk detail on the different models, and pro's and cons of each).

Q: What about managing project costs and scope in offshore arrangements?

A: That's a great point. In offshoring, you must ensure back-to-back commercial arrangements to avoid scope creep. This was a lesson I learned managing time and materials via a Ukraine team (who were brilliant BTW) on a fixed-price project.

(Firstly, this is a big no-no! Avoid at all cost! In my situation at the time, there was no other alternative for a quick spin-up of project burst activity with ambiguous requirements yet strict commercials already signed up with the customer. Happy to discuss how to avoid this with you).

The trick is to keep the customer's scope in check while managing your offshore team's delivery within the agreed terms. Without this, you risk not getting paid more by the customer, yet facing increased costs from your offshore team.

Q: Are there any particular challenges you've faced with offshoring?

A: One major challenge is balancing the need for quick project bursts with the continuous management of different time zones and work cultures. For example, the follow-the-sun development model at Prodigious required me to be available round the clock, which was demanding but crucial for timely project delivery. Adapting to these dynamics is key.

Q: Finally, what advice would you give to someone new to offshoring?

A: Start with a clear understanding of what you want to achieve and communicate this effectively to your offshore team. Establish strong operational leadership at the offshore site and ensure your documentation is detailed and precise. Remember, offshoring is not just a cost-saving measure; it's a strategic move that, if done right, can significantly enhance your business's efficiency and global reach.

Interested in learning more about offshoring strategies and insights? Feel free to connect with me on LinkedIn or drop me a message. Let's explore how we can streamline your business operations together.