Owning an Off-Shore Team Vs Outsourcing
Why outsource, when you can actually afford an off-shore team or office in India?
Wonder how? Let me help you understand this better through a step-by-step explanation:
The practice of availing goods or services through an outside supplier or business is termed as outsourcing. Businesses often rely on other businesses for many services as it is an effective cost-slicing measure.
When it comes to IT consulting services, a corporation usually tries to avail of the services of a single or multiple providers for all their IT necessities.
Risks of Outsourcing
Outsourcing involves various risk factors as a service provider might require the help of one or more third parties to deliver the required service. It is often noticed, the expectations regarding a third party's performance are not up to the mark. Additionally, the data and other important information are always under threat.
With that covered, let us now try to understand why the “In-House Team” concept is hyped up so much.
In-House IT Team
In-house IT support refers to an IT department within the organization. It implies that you just have to hire the people necessary to run this department. The best part is that you will have full control over them and their actions.
Benefits of In-House Team
An In-house team not only gives the business complete control over all activities and operations but also provides various other benefits. Some of them are:
- Developers who are employed as permanent members of the team tend to pay far more attention to the precise needs of the corporate than the ones who work through outsourcing channels.
- Having an in-house team means the interaction for a particular project is more clear and direct. When there is a direct conversationwith the team members, it helps avoid false impressions and boom effectiveness.
- When you have an in-house team of software developers and other IT experts, it is always faster to change the features of the project, add new ones, and discuss their technical background.
- Additionally,there is an added sense of security when the people working on the project belong to your own company.
- Apart from all the above benefits, having a member of staff dedicated thereto gives the business control over things like reaction time, quality of labor and activity.
Before you make a decision, have a look at a few downsides of hiring an in-house team:
Downsides of In-House Team
Having an in-house team has its fair share of issues too. You should be prepared for these problems in advance:
- It can take tons of your time before you set together with the proper team. First of all, a lot of time will be wasted during the recruitment process. Secondly, training every employee and giving them the time to get in tune with the team members and the company will also not be quick. Thirdly, and most importantly, you might even need to fire some employees and restart the hiring due to one or more reasons.
- The prices of forming and maintaining such a gaggle should also not be underestimated. As almost every phase; involving the expenses of hiring, employment, benefits, downtime, ineffectiveness, or turnover; causes a lot of money.
- There's also the difficulty of working hours and the way off-hours. IT problems can occur at anytime of the day. They need to be addressed even when nobody is in the office.
These were the most basic problems. There could be various other problems depending upon the size and nature of your business.
Offshore IT Team
A team that is located in a different country is termed as an offshore team. People often confuse it with freelance or part-time jobs but there is a subtle difference. An offshore team is employed by your company but works in another geographic location.
Challenges in setting up offshore IT office:
There are a few hindrances you might face while establishing an offshore IT team or office.These challenges stop you from following this path; especially, if you are a Startup that wishes to spend minimum without any burden.
Reliable Consultant: The primary thing you need is a trusted, smart, knowledgeable, experienced, and effective consultant who can manage all the effort to establish an offshore office or team.
Budget: This is one of the most important factors. The client does outsource in developing countries like India to save costs and find effective resources. So, establishing an office or getting an efficient team would be cost draining and risky if you could not find a good consultant.
Hiring: After establishing the office, the second important factor is to find the proper resources. Hiring them from time to time and having back up requires expertise. For this, you need a hiring manager. However, an efficient consultant has enough resources and expertise to complete the hiring process with or without a hiring manager. Setting up a hiring process will also be very easy for an expert consultant.
Management: Once you start running a remote office or managing an offshore team, you need to take care of the infrastructure, hardware & software, location, office, rent, staff, account, security, and a lot of other things. Maintaining these regularly is often tiresome & difficult. So, you would also need an efficient Consultant (Manger) who can do these for you at comparatively low prices.
Legal Hassle: This is one factor that cannot be neglected especially when you are planning for the long term or need a team on a rather bigger scale. You need representation for offshore offices to have banking accounts, office space, employee salaries, buying equipment, etc. A proper IT Consultant takes care of all these things for your business.
If you are a start-up or a business trying to establish an off-shore IT team with limited funds, I will be your genie. Would you like to know, how I helped my Clients? How can I help youto establish your offshore team or office, even if you have a very low budget?
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