In the ever-dynamic landscape of the global economy, Offshoring has become a strategic and popular way for businesses to improve their operations, streamline processes, and expand their operations.
In a study conducted by Money Transfer Comparison to more than 200 owners and senior decision-makers across the full small and medium-sized enterprises (SME) spectrum, it was found out that more than half (51%) of Australian businesses is seeing themselves sourcing resources and customers from overseas in the next 12 years.
Across the states, businesses in Western Australia are most likely to source both suppliers and customers from overseas with 68%; this is followed by New South Wales at 53%, Victoria with 50%, South Australia at 46%, and Queensland with 40%.
The challenging economic climate and fierce competition has forced small and medium businesses to explore Offshoring as a business strategy practically to cut on operational costs. This trend also caused the growing demand for various Offshoring service providers in Australia.
Selecting a quality offshore partner is a crucial decision that can significantly impact the success of your business. Here are some points to consider in choosing the right Offshoring partner for your business:
🎯Define your objectives. Clearly outline your business goals, requirements, and expectations. This will help you communicate effectively with potential partners and ensure they understand your needs.
📋Evaluate experience and expertise. Look for Offshore partners with a proven track record in the specific industry or service you require. Check their portfolio, client testimonials, and case studies to assess their expertise.
💎Value reputation and references. Research the reputation of potential Offshore partners. Seek references from their past clients and ask about their experiences working with the company. Online reviews and industry forums can also provide insights into the company’s reputation.
✨Seek for quality work. Evaluate the quality of the work they deliver. You may request samples, prototypes, or demonstrations to assess the standards of their products or services.
👔Gauge communication and culture fit. Effective communication is crucial, especially when working across different time zones. Assess their communication channels, language competence, responsiveness, and cultural compatibility to ensure smooth collaboration and understanding.
👨🏽💻Weigh up technology infrastructure, data security, and compliance. Assess the infrastructure and technology capabilities of the offshore partner. Make sure they do not only have the necessary tools, equipment, and technology to meet your business requirements, but also follows industry-standard security practices and complies with relevant data protection regulations.
💼Choose scalability and flexibility. Consider the scalability of the offshore partner’s operations. Make sure that they’re business strategy is flexible, agile, and adept enough to anticipate the fluctuating needs of your business.
🎖️Decide on ‘quality not quantity’. While cost is a significant factor, it should not be the sole determining factor. Consider the overall value provided by the offshore partner, including their expertise, quality of work, and ability to meet deadlines.
📝Keep legal and contractual aspects on record. Review the legal aspects of partnering with a company from another country. Ensure that there is a clear and comprehensive contract outlining the terms, conditions, and responsibilities of both parties.
👋Visit the Offshore partner. Seeing is better than believing. Visit the offshore partner’s site facilities to get a firsthand look at their operations, meet the team, and assess their working environment.
💯Plan risk mitigation. Develop a risk mitigation strategy in case any issues arise during the collaboration. This could include having a contingency plan, clearly defined milestones, and a dispute resolution mechanism.
Offshoring can bring innumerable advantages and benefits that can positively impact your business. Choose a company that puts high importance to your most valued resource – your people.
As a people company, Brainbox is focused on unlocking potential in people and the organisations that they work for. We serve clients in many different countries and industries, all bound by a common desire to bring impactful change and powerful people performance. Talk with us today and discover how we can help your business achieve greater leverage. #OffshoringDoneDifferently.
Money Transfer Comparison, Will Australian Businesses Source More Suppliers or Customers from Overseas as the Cost of Doing Business Increases?, September 2023, https://moneytransfercomparison.com/australian-business-supplies-overseas/
MedRec Technologies, The Ultimate Guide to Finding the Right offshore Outsourcing Company in the UK, May 31, 2023, https://www.linkedin.com/pulse/ultimate-guide-finding-right-offshore-outsourcing-company/