Offshoring is mostly utilised for labour arbitrage. SMEs either lease offshore staff or set up a small offshore operation for routine tasks. This is practical but not ideal in the long run. To go beyond cost-cutting, SMEs need to leverage talent to create value for their business.
Here's how:
Invest in Better Talent
The right skill set can be difficult to find and technology continues to change how companies do business. SMEs need staff that have the knowledge to use new technologies and the skill to deliver their service requirements. SMEs should partner with an offshore service provider that has highly skilled staff for specialised areas such as IT and online services. They can deliver work beyond routine tasks and provide dynamic solutions.Strategic In-house Managers
Offshoring engagements are limited because clients often focus on less expensive alternatives for labour. While this is practical for SMEs, it doesn't create any value in the long run. SMEs should have in-house executives with strategic capabilities to manage offshoring engagements. Analytical skills and transformational understanding are helpful in finding better ways to improve business processes and service delivery.
Streamline Staff
SLAs always take up all the attention in offshoring contracts. However, these service requirements would not be met if it weren't for employees both onshore and offshore. SMEs should include staff in their goals. In-house and offshore teams should be reviewed regularly and processes overhauled as necessary.When it comes to finances, businesses either cut costs or expand revenue. Both can be achieved. SMEs should use offshore staffing and other solutions to augment their in-house efforts, not just another way to avoid tasks that they don't want to do. A number of Australian small and medium businesses have done this and succeeded.
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