Offshoring Risks

Offshoring has some risks, but we manage them.

Without doubt, offshoring offers many benefits, but it does come with some risks too. The risks include:

  • Local workforce change management: It’s crucial to manage the changes around offshoring with your local staff. Local staff buy-in, understanding and acceptance of the offshore staff are all important in any offshoring strategy.
  • Cultural differences and misunderstandings: The Philippines has a 94 per cent English literacy rate and direct exposure to western culture, but subtle differences in culture and understanding can cause difficulties unless handled with care.
  • Data security: Businesses considering offshoring are often concerned about data location and security. There will always be an inherent level of risk in providing employees access to company data. Whether that risk is greater or lesser in offshore locations is a matter of opinion.
  • Protecting intellectual property: Theft of intellectual property can be a risk if not properly managed. Protecting existing intellectual property rights and ownership of newly created intellectual property are important issues to consider when setting up an offshore staffing solution.
  • Managing expectations: It’s important to manage expectations when just starting out with your offshore staff member. Setting timeframes and deliverables that are achievable helps to support staff, customer and supplier relationships during this phase.