As we detailed in our previous blog post, outsourcing to India has many advantages. However, in some cases, outsourcing may not be the way to go for your business. Here are the top things you need to consider before you make the decision as to whether or not you outsource to India.
- Underdeveloped infrastructure
- Staff turnover
- Different business culture
- Different time zone
- Hidden costs
- Loss of sensitive data
- Don’t outsource key tasks
- Losing management control over some tasks
- India is not the only location
Even though Indian outsourcing providers tend to have excellent IT infrastructure, the condition of roads and other physical infrastructure in the country is still less than desirable. If the nature of your outsourced tasks requires frequent personal visits to India, you need to factor in where your business partner is located and how long it will take you to travel there. . Also, due to how densely populated the cities are, traffic is quite congested s which makes getting around even harder.
Indian outsource providers tend to have a high staff turnover. While that doesn’t directly affect you, constantly training new employees slows the operation of your service provider down which might result in delays while completing your tasks.
Working with people from a different business culture is always a challenge. If you plan to outsource time-sensitive tasks, make sure to give ample time for your providers to complete them, since you may need to allow time for extra communication.
Depending on your location in the US, there might be even 15 hours of time difference between you and your service provider (Hawaii – New Delhi is 15:30, while New York – New Delhi is 10:30). If your outsourced tasks require close daily cooperation, this might prove to be a challenge.
When negotiating your contract, pay attention to the small script as it might include hidden costs associated with outsourcing.
Depending on the tasks you choose to outsource, you may have to share some data with your outsourcing provider. If that is the case, make sure you have a strong confidentiality agreement with regular checks in place to protect your data. Keep in mind that your service provider may work for other companies who might be considered your competitors.
While outsourcing non-sensitive tasks is a great idea to help your business grow, you must bear in mind that your outsource provider is not your employee. Avoid being overly dependent on your provider; keep your key functions within your business to protect yourself as well as your interests.
Since your outsourcing provider most likely works for other companies as well, some delays might be expected depending on their workload.
If you outsource tasks from your company, you won’t be able to manage how those tasks are completed. Make sure to outline all your quality requirements and deadlines in your outsourcing contract to avoid problems.
Over the past decade, many other countries entered the outsourcing market and have now become equal competitors to India. Locations like Latin-America, Eastern Europe, the Middle East, Asia or the Caribbean offer competitive outsourcing services. Why not have a look around and choose the best outsourcing partner for your needs? And while doing that, keep in mind that through Veem, paying your supplier is fast, secure, low-cost, and as easy as sending an email.