4 Factors in Choosing an Offshore Service Provider
Beside a detailed offshore strategy, choosing the prestigious service provider proves vital in the company’s successful transition and operation in destination countries. Simple as it may seem, the process could be quite confusing and bewildering, obviously due to the increasing number of offshore service providers in recent years. Fortunately, there are 4 factors you can use as guidelines in choosing an appropriate offshore partner for the company.
A serious and experienced service provider would always choose to locate in modern, commercial hubs (e.g. Ho Chi Minh city – Vietnam, Kuala Lumpur – Malaysia or Manila – The Philippines). This would help them attract and recruit talent pools with suitable qualifications. Besides, the staff also get to the office easily on a daily basis, thanks to the developed transportation systems.
The location also decides how the service providers can offer your offshore team in terms of infrastructure and communication. The internet connection, back-up power, supporting facilities tend to be more stable and modern in the city centres than on the outskirts, helping the communication and work procedure between Australian and offshore teams proceeding smoothly.
Many offshore service providers insist on a fixed model in order to reach promised outcomes. Obviously, a prestigious provider can offer more than that! Years of experience and strong management allow them to design and adjust the solutions to meet your company’s specific requirements, whether it is virtual captive, joint venture or build-operate-transfer.
One more notice is the good service providers always give cyrstal clear pricing and detailed notifications for each additional, customised feature. You should be cautious to those who say yes to every requirement without any consideration and in-depth discussion.
Staff training and retention strategy
One of the worst scenario in offshoring your company’s functions is the offshore partner cannot recruit the right talent, the staff keep leaving after 2-4 weeks and the vicious circle goes on. Choosing a prestigious service provider would basically erase this risk, as they know where to find the candidates in each destination and have feasible strategies in staff retention. These will include various in-house training sessions on soft skills, leadership skills or even technical aspects like Scrum Methodology.
Staff retention also comes from how the offshore service provider, on behalf of your company, keep the employee-related issues under the destination’s regulations and resolve any possible concerns like benefits, overtime, insurances etc. Normally, the HR department would be in charge while the Australian operation managers keep your company constantly updated.
Australian Presence and Support
All considered, you are still about to offshore in an unfamiliar country, several hours flight away from Australia. Therefore, you should always choose a service provider with Australian presence and on-site support. They can guide you through the whole process, from initial IT set-up to putting your offshore team into operation. Furthermore, the partnership a company forms with its offshore service provider is in long term for stability, so the post-sales support and timely communication should be highly appreciated.
Australian presence also means that the service provider understands clearly the business culture your company is practising. That will ease many hurdles in recruiting the perfect teams (in technical and cultural aspects) as well as being a bridge between your company and the offshore team in daily work.
If you are still concerned about choosing a suitable offshore service provider, AS White Global would be happy to help with any of your questions. We can also help to guide you through the journey of building your own global team.