Uncover the Hidden Costs of Offshoring Service | AS White Global

Uncover the Hidden Costs of Offshoring

Has anyone wondered where half of the year went, now that we’re fast approaching July? As time flies, so does the constant rising pressure in the working field – the need to hire more employees to complete a large volume of work or recruiting for specialised roles which can eventually take its toll. This causes limitations – the need to reduce labour costs significantly by opting with offshoring. However, to curb cost issues, we’ll first need to find out what the hidden costs of offshoring are.

To address these issues, companies must be aware on what the best basic sourcing model they can utilise that best suits them to further establish and run at full capacity no matter if your company obtains its services internally, externally, or through a partnership. Read more on outsourcing vs offshoring.

Experienced offshore solution providers will develop and share a specific timeline with you for each step in the on-boarding process. The timeline helps to maintain efficiency and improve overall coordination within your hired extended team. Read more on tips for successful offshoring.

What companies must firstly seek is to find out what are the hidden costs of offshoring before jumping in too soon:

Transition Cost

  • Communications – You’ll may require resources to write, manage, and facilitate, including the potential use of engaging third-party public relations firms to disseminate messages for your brand to the public. The incurred costs will depend on how big or small your campaign is going to be and how long you wish to run it for.
  • Technical costs – If your company is not equipped with an in-house IT support, chances are, it’s necessary to engage a third-party solutions provider to integrate your IT systems which will incur some costs from your end. Example, our internal staff at ASW will work with your IT department in terms of developing and integrating your IT systems to new interfaces, the porting of technical codes to new work machines, and more.
  • Additional software costs for specific roles – There will be times where your extended offshore team (depending on their specific roles), require different project management tools are essential. Example, a designated software tool for the software team, graphic designers, specific accounting software for finance department, etc.
  • Miscellaneous costs – This includes uniform wear for your offshore team if required as set by your company.
  • Other additional costs to consider – Travel fees may also incur between your local country and your offshore team to help bridge the gap and overcome any language and cultural differences as it strengthens the bond and cultivates teamwork for both you and your extended offshore team (also applies when trainings is conducted)

While the estimation of hidden costs of offshoring is an extremely crucial stage in deciding whether, or not to offshore, companies should take into consideration every single aspect that might show unwanted figures in your bill.

If you’re looking to build an extension of your local team, contact ASW Global here.



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