Why Offshoring Fails: Avoiding the Ten Pitfalls

A decade ago, offshore IT outsourcing left much to be desired. Finding skilled tech staff was like searching for a needle in a haystack, with inconsistent results.

Either we had to rely on outsourcing facilities that controlled the staff, leaving us with little control over skills, recruitment, or retention, or we hired individuals directly through websites only to find them working slowly from home with poor internet connections and distracting backgrounds. It was a frustrating and unreliable process, exacerbated by cultural, skill, and environmental challenges.

However, we recognised these pain points and decided to take matters into our own hands. As experts in recruiting Filipino talent for Australian MSPs and software companies, our Australian directors leveraged their decades of experience owning IT support and software firms before establishing operations in the Philippines.

We truly understand the challenges you face.

To ensure exceptional talent acquisition, we have developed rigorous exams and filtering systems that consistently identify the top 5% of Filipino professionals. We have moved away from the ineffective resume-centric approach. At our facility, we exclusively hire the best candidates, offering competitive wages and benefits, resulting in an impressive average staff retention rate of 96%.

Our approach empowers you to retain full control over your offshore staff, seamlessly integrating them into your onshore team. This is not traditional outsourcing; it’s a partnership where we recruit according to your specifications, providing you with trained professionals who operate and are treated no differently from your onshore staff. They work from our office, solely dedicated to serving your needs.

We go the extra mile to ensure a smooth transition and enhanced productivity for our clients.

Our tailored initial consulting services equip your team with the knowledge and strategies necessary for success. We offer cross-cultural training for both you and your recruits, fostering better understanding and collaboration. Our management tips help you navigate the unique challenges of multi-shored teams, avoiding frustration and driving superior results.

We also address the ten common reasons why tech companies fail with offshoring, ensuring you don’t repeat their mistakes.

You won’t need to overhaul your business to make this work.

Unlike the traditional model of NOC/outsourcing, where businesses must conform their processes to match the NOC’s operations, our model allows you to maintain your existing business structure. You can simply train your offshore staff on your systems, just like you do with your onshore team. Manage them as you normally would.

We make the transition surprisingly easy.

We have successfully partnered with numerous businesses similar to yours, leaving nothing to chance. We take care of all the essential tasks on your behalf to build a scalable Philippine team, including recruitment, employment contracts, payroll, medical insurance, leasing, attendance monitoring, secure networking, redundant power, and fast internet.

The Ten Pitfalls Tech Businesses Must Avoid When Offshoring

We have already resolved the first five strategy-related issues for you:

• 1. Choosing the wrong offshoring model.
• 2. Engaging subpar service providers for staff leasing, office provision, legal, accounting, and more.
• 3. Inadequate recruitment processes or relying on facilities with insufficient processes.
• 4. Inadequate salary packaging and lack of meaningful benefits for staff, coupled with a lack of transparency in costs.
• 5. Poor cost management, either overpaying and reducing the appeal of offshoring or underpaying and facing retention challenges.

The remaining five pitfalls relate to knowledge and execution, which is where our consulting and support come in:

• 6. Lack of cultural understanding and incompatible management practices.
• 7. Failure to communicate the benefits of offshoring internally, leading to resistance or sabotage.
• 8. Insufficient planning for integrating another location, including technology and communication systems.
• 9. Disjointed execution due to inadequate documentation or training, resulting in a disconnect from the experience of your offshore staff.
• 10. Failure to treat the offshore team as part of the onshore team, expecting robotic behavior and dehumanising the individuals involved.

By addressing these challenges head-on, we ensure that your offshoring experience is seamless and successful, enabling you to tap into the benefits of a global workforce without compromising your business operations.