An Insight into the Technology world.
Analysis and Insight from Savvycom Team.

Advantages & Disadvantages of Outsourcing in Asia

Advantages

Recent decades have witnessed explosive development of the Information Technology industry. Fierce competition forces companies to optimize resources, and outsourcing, therefore, proves to be an ideal option in many situations. Asian countries like Vietnam, Thailand or China have been chosen as outsourcing service providers.

1. Lower cost

The truth is, labour cost in Asian countries is much lower than that of European countries, making it the prime benefits of offshore outsourcing. In many cases, outsourcing IT services would save you up to 30%-60% of the expenditures.

2. Skilled employees

Instead of having to spend time training new employees, you can find talented and skilled ones from overseas, and again, at lower costs. Take Vietnam as an example to understand why Asia is ideal for software outsourcing: a survey by the Tholons – Global Services Group listed Vietnam as one of the ten most ideal countries for software outsourcing service. And in spite of the economic crisis, Vietnam software companies are still growing enough to satisfy demanding customers. With low labour cost and high standards in the IT sector, Vietnamese software engineers are capable of joining high-quality projects with complicated techniques and knowledge. Read more: The Essential Skills Your Offshore Software Engineers Should Have

3. Time-zone difference

Another kudos that offshore outsourcing offers is time-zone difference. Due to hours of variation between Asia and Europe, you can get your work done even when you’re sleeping. Read more: How to overcome time zone issue with offshore developers?

Outsourcing - an effective cost-saving strategy for any SMEs

Outsourcing around the world

Disadvantages

1. Legal issues

Legal issues and contracts are often complicated, especially when it comes to offshore outsourcing. Make sure you protect your intellectual property by signing an NDA. Prepare your own contracts with consultancy from professional lawyers to assure customers rights as well as the service provider’s duties.

2. Communication

Due to differences in languages and cultures, misunderstanding is highly possible. You may lose control of your projects if your employees are vague about their roles and customers demands. That means transparent communication is a must in any offshore outsourcing project.

3. Differences in trends/tastes

There is a huge variation in trends and tastes between the East and the West. Make sure to communicate your styles, especially when you’re seeking for an outsourcing service provider in the graphic designing sector so that the designs suit your customers the best.

Read more: offshoring software development pros cons

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