Five Tips to Help you Find an Ideal Outsourcing Location

Posted on September 7, 2012

You have read a lot about outsourcing and its manifold benefits. You are convinced that offshoring can help your company combat market challenges like business competition, globalization and advancements in technology. Apart from such advantages, you are aware that outsourcing is an economical way to cut back on production and operation cost.

But now you are confused on how to choose the most ideal location for your business. Will it be India, China or The Philippines? Should you choose a location only based on low cost or should you look for skill sets? Here are five tips that you can use wile scanning through a list of possible outsourcing locations.

1. Look for the skill sets that your business requires

Think about what you are going to outsource. Will it software development, customer support or engineering? Different outsourcing locations have different areas of specializations, so it would be best to choose a location where you can access the skills that your business requires. While India has the most skilled software programmers, China is known its strong manufacturing abilities. The Philippines and Indonesia are popular for their expertise in call center operations.

2. Check for the data security measures followed

This is probably the most important factor that you have to look into. Look for a destination that offers sound data security and privacy measures, so that you don’t have to be concerned about the misappropriate use of your trade secrets or intellectual property. Remember to get in-depth details about the data security practices followed by the country before you outsource. You would also need to check on the trustworthiness of the IT infrastructure and network security.

3. Does the location have a favorable government?

This factor is sometimes overlooked, but this can prove to be integral to the success of your outsourced project. With a favorable government, you can be sure of a seamless operation of your work. Check if the outsourcing location offers government support in areas like tax relief, public infrastructure and employment regulations.

4. Consider other crucial indirect factors

Remember to also check for problems regarding language issues, cultural barriers, time zone difference, social environment, safety and political environment. Such factors can have an indirect bearing on the completion of your project.

5. How different is their currency rate from yours?

The variation in the currency rate between nations is why offshoring countries provide services at a low cost. Check on the location’s currency value. It would also be good to evaluate a possible fluctuation over time and look into the volatility of varied markets.

What are the yardsticks that you use while searching for an ideal outsourcing destination? Why not add some of these tips to your list?

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