Advantages and Disadvantages of Offshore IT Solutions
We are going to discuss outsourcing of IT Solutions (Information Technology Solutions). In the earlier days when one was running a business it was often a topic of debate of the jobs should be done by employees working in house or outsourced. Now no one thinks twice before out sourcing. The bigger question in the modern times is whether the outsourcing should be done onshore or offshore.
When a business function is exported to an offshore location in another country it called Offshoring. Countries like India, China and Philippines are some of the major countries which are used for offshore businesses. IT Solutions are offshored due to the reduced cost and tax in these countries and is very popular worldwide.
Disadvantages of offshoring IT Solutions:
Diverse culture and work ethics:
With IT Solutions being offshored one of the man drawbacks is the difference in the culture of the people. The work ethics like discipline, respect for time, honesty and straightforwardness in dealing with issues, problem solving attitude change from location to location. This causes a lot of differences of opinion and rift between both the parties involved.
Non-anticipated Cost:
When you offshore IT Solutions – there is an issue of payments that keep fluctuating due to the exchange rate and legal costs that could be hidden and non-anticipated when the business deal was fixed. These costs are often difficult to calculate beforehand. When the currency rates fluctuate the profits made by the companies could be affected.
Language Barrier: IT Solutions may have employees who do not speak the same language as the country who they are working for. The native language could be different and there are no face to face meetings possible. Even with modern technological advancements and use of apps like Skype or video or webinars it is always not possible to communicate easily due to language barriers or time difference.
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Advantages of offshoring IT Solutions:
Cost saving: The idea of offshoring IT Solutions is popular due to it being cost effective as one can save a whole lot of factor like saving on the labor cost, management cost, office space, equipment cost, employee management and supervision.
Flexible Options: Offshoring IT provide companies a lot of flexibility. One doesn’t need to hire and fire employees. Offshoring is also criticized since due to this reason as jobs move out of the country that is outsourcing especially IT Solutions.
Working round the Clock: IT Solutions in companies that have running operations throughout 24 hours benefit hugely due to off shoring. Due to time difference one can easily avail benefits of off shoring by receiving services of IT round the clock. It makes working functions cost effective as there are fewer errors and delays along with saving companies to hire people at night shifts.
Political Situation: Political uncertainty and change in governments causes insecurity and apprehension in people. There could be political tensions between the countries working together effecting the relationship and daily dealing with IT Solutions executives working for you. If the government policies change they may even cause rise in expenses making IT not as cost effective as one had anticipated.
