With the rapid growth of technology post-Covid, several businesses are working remotely. Companies are partnering with offshore engineering services companies in engineering, software development, financial services and others. This has helped businesses to meet their cost goals while ensuring close communication with remote offshore teams. Offshore partnership also optimizes their products and services and creates more growth opportunities. In this article let's look at some of the considerations for international clients while partnering with offshore engineering companies.
Cost
The primary benefit from outsourcing is reduction in cost. Companies venturing into new areas need quick and reliable offshore partners that can provide value for their money. Partnering with an offshore company can give them higher quality output with reduced cost.
Outsourcing services are more economical than hiring an in-house team, as the same services can be obtained at reduced cost without compromising on the services or quality of the work. It also reduces the fixed overhead expenses and decreases the cost of setting up new infrastructure for the client. This financial advantage empowers organizations to allocate resources more efficiently, fostering growth and innovation.
Talent Pool
Another benefit is hiring the right person for the task. One of the primary advantages is the ability to tap into a diverse pool of talent globally. Opening the doors to offshore partnership can increase the talent pool for a particular role. The global nature of offshore partnership also aids in getting access to specialized skills and expertise that may be scarce in the client’s home country. Most of the time hiring offshore partnerships is cost-effective as it allows companies to leverage skilled labors and resources in a region with lower operational cost making it economical. Hiring an offshore partner who has the knowledge, and the required database yields quicker, reliable, and efficient outputs.
New market
Partnering with offshore companies provides a gateway to new markets. Local partners bring insights into their markets, helping businesses navigate cultural nuances, regulations, and consumer preferences, facilitating successful market entry.
Scalability
Offshore partnership services provide businesses with flexibility to scale their operations based on the changing needs of the market conditions. In case of sudden surge in demand or need for downsizing after project completion, offshore companies can help you change the strategies and can quickly adapt to Client's requirements. As the offshore companies have a vast pool of global talent, scaling up or down becomes a seamless process. This allows the companies to be more agile and responsible in ever-evolving market scenarios.
Time Zone
Managing communication across time zones can be challenging especially when the clients are in the USA or Europe and have offshore partner in India or other Asian countries. Working in 2 or 3 different time zones may causes downtime, work delays and planning issues if the daily communication and handover process is not set.
Data Security
The security of data is yet another aspect that client companies face while working with offshore partnerships. Offshore companies tend to face an unique set of challenges with data privacy and protection. Due to the nature of tasks commonly outsourced, offshore partners handle sensitive consumer data. It is one of the major concerns for companies, especially in the field of automotive. As competition for newer and innovative products gets higher the protection of the data takes priority.
Offshore partnerships require rigorous attention to data security and compliance issues. Varying regulatory environments and data protection standards can pose significant challenges, necessitating robust strategies to ensure information security and legal adherence
Language of Communication
Connecting with the offshore companies has now-a-days become easier as almost of them are well versed in English. However, sometimes it becomes difficult to understand and communicate with client when they are from non-English background. Understanding the critical role of language in business, particularly in countries like Japan, Korea, German gives comfort and enables ease of communication.
The different language, time zone and cultural nuances can lead to misunderstandings, and can create tension between clients and offshore companies. The potential for miscommunication and misunderstandings becomes hindersome in the growth of both business and client relationships. Such misunderstandings can further create delays and, in some cases, project failures.
Compliance
Navigating through complexities of different legal, regulatory, and cultural frameworks is one of the most difficult parts about partnering with offshore companies. There are no national laws or specific national regulations that regulate outsourcing transactions generally or in relation to types of outsourcing transactions. Hence the company must cruise through web of local and international laws and regulations to find suitable solution. The adaptation of unfamiliar business practices and understanding local laws can be daunting.
How can Goken Add value as an Offshore Development Partner
Goken has over 20+ years of experience working with major automotive clients and can help in providing a perfect offshore service solution while striking a balance between high quality and reasonable costs.
Goken’s offshore services come in two forms –
Engineering staffing and Project based services. Through the staffing model, Goken can help clients finding the right skills set for a job with special skills within the stipulated frame of time. Goken assessment consists of multiple steps including screening, aptitude, technical interviews, software or tool test and background verification. This ensures there is the right candidate for the job. Clients often approach Goken with specific engineering deliverables in the areas of engineering design, automation, Should costing and CAE. Goken’s offshore team has strong capabilities in each of the domain while having multiple years of product development know-how. Goken’s engineering leaders have been part of global automotive OEMs and have successfully handled several large scale engineering projects.
Goken’s engineering team is spread across 3 regions - India, America and Japan. This allows our team to work in collaboration with clients for more than 16 hours daily thus enhancing communication as well as daily output. Goken puts heavy emphasis on security of client's data by ensuring virtual as well as physical security. Goken implements rigorous security measures to safeguard against data loss, misuse, and alteration. Goken continuously strives to update our security protocols to maintain the highest levels of encryption and service.
Our language experts and bilingual engineers give us a competitive edge in working with international clients. This service is essential for effective communication in engineering and technology discussions, promoting creativity, reducing conflict, enhancing competitiveness, expanding revenue opportunities, and supporting partnerships. Goken's language services team consists of professionals skilled in translation, linguistic analysis, and cultural nuances, ensuring accurate and culturally sensitive communication.
