True or False: Clarifying 5 IT Offshoring Claims in 2016
IT services are among the first industries that witnessed the emergence of offshoring practices more than 20 years ago, and still take advantage of the model up to now. Below, we unveil and clarify 5 most popular IT offshoring claims in 2016, so that your company can either grow current offshoring teams or decide if this is the perfect time for your IT offshoring journey.
India is the Promised Land for IT offshoring.
TRUE. According to A.T. Kearney, India is still the top destination for any company seeking to delegate their IT services, despite pessimistic forecasts that the trend might end in 2020. However, if those figures do make you feel concerned, the good news is many other destinations are rocketing forward in the global IT offshoring map – all equipped with lessons from India and promise better operational standards and support. You can now easily check the list of Malaysia, the Philippines, Vietnam, Eastern-European countries etc.
You can only build software development teams when offshoring.
FALSE. Software engineers and software development make up a large portion in the IT offshoring, but there are more to discover. The global technological gaps are not as big as they used to be, so companies can choose one specific function or build a complete offshore IT team including: project manager, software engineers, QA-QC engineers and/or managed services specialists.
Because you offshore to another country, you should follow traditional practices to ensure everything is transitioned smoothly.
FALSE. IT offshoring doesn’t necessarily mean that you build teams in less developed countries for the purpose of cost saving. In reality, talented engineers in Vietnam, Malaysia or Brazil can now exercise Agile and Scrum Methodology, discuss thoroughly about trends like Big Data, Artificial Intelligent etc. Therefore, you only need to focus on the platform / standard / model your local teams are working on and dealing with service providers to establish a uniform procedure across countries.
Communication and mutual respect are keys to successful offshoring models.
TRUE. Frankly speaking, offshoring and outsourcing are supposed to allow your teams to work and collaborate smoothly even though they never actually meet each other in real life. However, this is just short-term planning and if you want to invest in sustainable model, you have to let them meet, discuss and get to know as if they share the same pantry. The solution may range from daily, weekly meetings via Video conference, Skype etc. to onsite training sessions when you send local staff to destination countries or vice versa.
Data security is real. You should only build IT teams in one country for better management.
FALSE. Instead, the diversity of locations allows you to build outstanding IT teams that support, complement and back up each other. If you are worried about different data security performances and other technical issues, why don’t you choose countries that belong to a united economic and cultural bloc, like ASEAN? For example, many Australian companies currently have their software development based in Vietnam while contacting the managed services and help desk teams in Malaysia. With clear introduction and an experienced service provider, this scenario is very feasible.