Risks Involved with Offshore Outsourcing


Outsourcing is common to all businesses nowadays as most companies look forward to an external partner to take care of the business operations. Since outsourcing to the call centre outsourcing companies is growing every day, there has been a subsequent increase in offshore outsourcing.

With time, offshore outsourcing has grown from 20 to 25 per cent per annum. While more and more companies are finding offshore outsourcing beneficial, there are some potential threats that it brings too.

Outsourcing onshore may help you be safe from the threats that offshore companies bring. As per research, companies will outsource numerous functions offshore in the time to come, thus a check is vital.

If you wish to outsource offshore and feel a company capable enough to handle your business operations; check some potential threats before.

It is vital to work with a strategy for splendid results and thus, before outsourcing to an external partner, understand the pros and cons.

Check out as we list the risks involved with offshore outsourcing to be kept in mind:

Data security threats

When a company outsources its business service to an external partner, it has to share all information about the offerings.

Since this data sharing involves sharing the business confidential information, there are some potential risks that may hit the business excellence.

Any threat to business security can be disastrous to the organization’s brand image, thus any such possibility needs to be detained.

Since outsourcing offshore means, granting permission of business access to a remote partner, it is better and safe to outsource to an onshore one. When the partner is located in a geographically different location, it is hard to communicate and check reliability.

Moreover, it is hard to trust on their infrastructure and delivery deadlines. Thus, to avoid any such issue of security threat, check your partner’s experience, check with previous clients, and ask for documentation for security.

Lack of business knowledge

IT organizations often outsource their secondary tasks to an experienced partner. Well, it is obvious to outsource some tasks to be free of some responsibilities to focus on core functions.

Since outsourcing to an adequate partner is indispensable, a lack of knowledge can defame your services. There is a possibility of the offshore partner having less knowledge about your business service.

Thus, in such a case the partner may not be able to deliver optimum results to the customer as expected. So, prefer onshore over offshore!

Cost reduction

When a company outsources its operations, it aims to reduce the expenses. However, offshore outsourcing may not be that helpful to your organization in checking costs.

Since an offshore partner may have a different budget and their currency value also differ from yours. Therefore, you have to think and know the repercussions of outsourcing to them.

It is better to look for call centre outsourcing companies in Australia that are onshore and are geographically reachable, easily communicable, and work in the same time zone.

It is easier to handle services with such partners and coordinate well for any changes.

Failure in delivering results

Outsourcing the business functions to an offshore partner, there is a possibility of the partner failing to deliver adequate results.

IT organizations often outsource to an external partner. However, not always do the partner deliver on-time results. At times, delays in service deliveries lead to negative customer experience, which hampers the business brand image.

What becomes worse is that it is hard to communicate with offshore partners at times due to different time zones. There is a possibility that the partner might not be in their working hours at that moment!

Such a situation can be hassling and can be a threat to the business brand name. It is thus easier to outsource to an onshore partner that is easier to reach at times of an emergency and works in the same time zone.

Different government regulation and culture

The offshore partner works underneath a different government regulation, thus they might vary in service deliveries. However, with an onshore partner, you do not face any such issue.

To maintain transparency, it is better to outsource onshore. With an offshore partner, you will have to know their regulations, check their documentation, limitations and still work under the risk of different government regulations, which might be unfavourable for your business.

Not only is this, but the partners’ culture is also different from your country and thus, they might not bring 100% even after trying their best. It is even possible that the partner would have a working day when your company has an off due to different holiday patterns.

Thus, in such a case it becomes hard to coordinate and collaborate to bring optimum results. The language barrier with offshore partners can also be a concern to look at!

Thanks for reading!