The misunderstood costs of off shoring
HomeShore Solutions is continuously refining and enhancing its recruitment process to provide a more cost effective service when compared to other staffing companies.
Why most projects are not suitable for off shoring:
- As an organization are you able to strictly define the goals of off shored projects?
- There is a high probability that your off shored team will change team members and brain trust (Think back to the boom days of the dot com era!). Offshore employees have experienced the same dramatic pay increases and resources are easily enticed away to the next company for the next pay increase. This means you start at ground zero with new engineers every several months.
- Are your off shored projects smaller parts of larger efforts which require intensive coordination? This is a common point of failure as difficulties in managing, coordinating and training teams 14 to 18 time zones apart becomes a logistics nightmare. Additionally the amount of information considered intuitive by one part of the team (usually close to the business units) is a total unknown offshore.
- Does your business model allow for inconsistent or highly variable results or does it set ridged budgets and time lines. If your business is the latter then off shoring isn’t right for you.
Recent Studies Indicate:
* 70% of respondents had negative experiences with outsourcing projects.
* 25% have brought outsourced activities back in house.
* Almost 50% failed to realize the cost savings they thought they would gain through outsourcing alone.