If you could hire 4-5 people in China for the same salary that you give to 1 employee in the US, why wouldn’t you offshore your work to China? Doesn’t it seem like a perfect plan to save some recurring operating costs? Trust me; it might not be as easy as you think. Apart from obvious major risks like language barriers, culture differences, and copyright infringement; there are various other risks that can make your offshore venture a failure. In this blog, I will put some light on some of those hidden issues.
Increase in travel expenses: Most of the armature businesses will measure the success of their offshore project through the reduction in their recurring operating costs in the US. Often that performance metrics doesn't take the overhead costs, such as traveling, in to the consideration. Successful outsourcing requires significant face time during the launch phase to establish the rules of engagement and regularly thereafter to maintain the relationship. And these costs greatly increase as both the client and the offshore supplier make lengthy and expensive trips.
High turnover: With more and more companies moving their workforce to India, China, and Brazil; the demand for offshore workers increases, so do their wages. Salaries in India, for example, are increasing by double digits almost every year. For some overseas locations in China, employee turnover is extremely high sometimes as much as 50% as employees are regularly recruited away from their current jobs. For a knowledge-based function such as software development, this high amount of turnover can be disastrous in the long run.
Negative ROI: On an average, it takes approximately 3-5 years before one can see the same amount of productivity from their offshore team. Research has shown that although the advertised savings for offshoring were around 60-80%, actual savings of 0-20% were common and in many cases it was negative. Most of the businesses fail to consider the additional costs that are required to increase their management and training efforts, so that they can have the same level of quality in their end product.
Of course, not everything is bad about offshoring. In my next blog post, I will discuss few ideas about……’why you should consider offshoring’. Until then, if you have any other ideas or comments about offshoring, then please feel free to share it here on my blog. Thanks – Bhavin Gandhi
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Showing posts with label Collaboration. Show all posts
Showing posts with label Collaboration. Show all posts
Monday, June 11, 2012
Few reasons why you should think twice before offshoring your operations?
Monday, July 18, 2011
Where will you use written communication over in-person communication?
I recently opened up my Google+ account like any other tech fanatic. And one of the feature that got my attention was - Google's Hangout. I have never seen more than 4 users video chatting at the same time without a premium account (whatever service it maybe). Though this hangout feature got my attention, I don't think that today's generation of SMSs and Tweets will use this feature extensively. I might be wrong, people might use this technology extensively and we might find a new generation of “Hangouters”. But this is too soon to predict anything. The only thing that I can say with confidence is - why people prefer SMSs, Tweets, and e-mails instead of in-person talk, phone calls, and meetings. Following are few situations, where people would rather prefer written communication over in-person communication.
Language barrier: As a part of my job, I manage various individuals from different locations. One of the team that reports to me is located in China. While they are very intelligent and technically sound, they have one short coming of speaking English properly. They normally understand my pronunciation of English, but I mostly have a hard time in listing their English pronunciation. Even after closely listening, I miss some sentences. Thus, I prefer to talk to them through Live Messenger instead of through a video conference. This gives me the opportunity to understand them better, while this gives them the opportunity to consume the data, translate it into their native language (through Google translator), and respond me back.
Broadcasting: Written communication is also useful during information broadcasting. For example: if I am having my birthday party, I would rather post it on my Tweeter feeds, Facebook or Google+'s feeds instead of calling everyone to come. And why not? I don't need to repeat the same message to everyone on the phone. And I can also get the count of expected attendees at my party through these event's page.
Record keeping: With information overload in today's world, people tend to forget things which you might have mentioned to them few weeks ago. Thus, most of people like me, tends to follow-up through e-mail. According to me, e-mail is the best way to keep records of your conversation. For example: Let's say, I talk to "Joe" regarding some IT issue over the phone and he tells me that he will get back to me on next Monday. If I wouldn't have followed-up with an e-mail explaining the problem, I had to explain him the problem again on Monday. If I would have e-mailed him the details then I can just forward that e-mail and ask the status of this issue. He can then look at the information in the e-mail and find the status of the issue without wasting my or his time.
Speed: Sometimes, people just don't like to talk in-person for smaller talks. For example: Let's say, I have just talked to my colleague to see if he is interested in coming to a BBQ at my house. And he told me that he will get back to me today, but he forgot to respond. I would rather SMS him to ask his answer instead of calling him. If I call him, I don't have anything to say because I just talked to him not long ago. But I still want his answer. So, I will just get SMS him to find his answer. This will be much more quicker and time efficient.
People's availability: This is a really big question in today's world. 6/10 times, I want to talk to someone, but I can't find their free time. Thus, I always end up writing them an e-mail or texting them on their mobile. There can be various reasons for this issue, from time zone differences to their prior commitments to work or personal events. But when I use written communication instead of oral communication, they have the time to consume the information and then respond back to me on their free time. In this way, I don't put someone in a weird situation by calling them during their working hours.
I hope these tips might have given you some pointers about where to use written communication instead of in-person communication. If you know any other situations where written communication will be preferred over in-person communication then do let me know. I am always looking for people's feedback to improve my knowledge. Thanks. – Bhavin Gandhi
Language barrier: As a part of my job, I manage various individuals from different locations. One of the team that reports to me is located in China. While they are very intelligent and technically sound, they have one short coming of speaking English properly. They normally understand my pronunciation of English, but I mostly have a hard time in listing their English pronunciation. Even after closely listening, I miss some sentences. Thus, I prefer to talk to them through Live Messenger instead of through a video conference. This gives me the opportunity to understand them better, while this gives them the opportunity to consume the data, translate it into their native language (through Google translator), and respond me back.
Broadcasting: Written communication is also useful during information broadcasting. For example: if I am having my birthday party, I would rather post it on my Tweeter feeds, Facebook or Google+'s feeds instead of calling everyone to come. And why not? I don't need to repeat the same message to everyone on the phone. And I can also get the count of expected attendees at my party through these event's page.
Record keeping: With information overload in today's world, people tend to forget things which you might have mentioned to them few weeks ago. Thus, most of people like me, tends to follow-up through e-mail. According to me, e-mail is the best way to keep records of your conversation. For example: Let's say, I talk to "Joe" regarding some IT issue over the phone and he tells me that he will get back to me on next Monday. If I wouldn't have followed-up with an e-mail explaining the problem, I had to explain him the problem again on Monday. If I would have e-mailed him the details then I can just forward that e-mail and ask the status of this issue. He can then look at the information in the e-mail and find the status of the issue without wasting my or his time.
Speed: Sometimes, people just don't like to talk in-person for smaller talks. For example: Let's say, I have just talked to my colleague to see if he is interested in coming to a BBQ at my house. And he told me that he will get back to me today, but he forgot to respond. I would rather SMS him to ask his answer instead of calling him. If I call him, I don't have anything to say because I just talked to him not long ago. But I still want his answer. So, I will just get SMS him to find his answer. This will be much more quicker and time efficient.
People's availability: This is a really big question in today's world. 6/10 times, I want to talk to someone, but I can't find their free time. Thus, I always end up writing them an e-mail or texting them on their mobile. There can be various reasons for this issue, from time zone differences to their prior commitments to work or personal events. But when I use written communication instead of oral communication, they have the time to consume the information and then respond back to me on their free time. In this way, I don't put someone in a weird situation by calling them during their working hours.
I hope these tips might have given you some pointers about where to use written communication instead of in-person communication. If you know any other situations where written communication will be preferred over in-person communication then do let me know. I am always looking for people's feedback to improve my knowledge. Thanks. – Bhavin Gandhi
Wednesday, January 12, 2011
Future of collaboration – The Obama way
I recently helped one of my clients to create a collaborative application with their suppliers. This piece of software will help them in reducing their administrative costs by huge amount, and improve their process efficiency. During this entire process, I kept wondering about the future of collaboration.
In today’s world, the collaborative possibilities are transforming the way organizations operate. Look at the presidential primary campaign of 2008, Barack Obama became what The New York Times described as the first real “wiki-candidate”‘, with an online fundraising operation that operated in much the same way as social networking sites like MySpace or YouTube. The ‘my.BarackObama.com’ site offered users a practically unlimited array of ways to participate in the campaign. You can register to vote, or start your own affinity group, or download an Obama news widget to stay current, or get text-message updates on your mobile phone, etc. This list goes on. But the important thing to learn here is - Barack Obama’s campaign is a sign of things to come. It involved and connected voters in new ways, allowing mass participation in politics on an unprecedented level.
Now, let’s forget about the politics for the time being. Have you ever had chance to look at one iPhone app – the barcode scanner? This app is a live example of the future of collaboration. Using this app is really simple. You just have to scan the barcode of the product that you like, using your iPhone camera, and it will show you the price of the exact same product in other stores. I personally think that this is the future of collaboration. In the future, people will use technology as their primary resource for collaboration. Doctors will be able to see your complete medical history by just one click; Universities will be able to see your transcripts from another University in a second; business will be able to accurately predict the demand of their consumers. Those days are not far away, when your Doctors will be able to see your payback capacity (credit history) before operating on you.
I hope my article was helpful, and I am eager to hear your feedback. Thanks. – Bhavin Gandhi
In today’s world, the collaborative possibilities are transforming the way organizations operate. Look at the presidential primary campaign of 2008, Barack Obama became what The New York Times described as the first real “wiki-candidate”‘, with an online fundraising operation that operated in much the same way as social networking sites like MySpace or YouTube. The ‘my.BarackObama.com’ site offered users a practically unlimited array of ways to participate in the campaign. You can register to vote, or start your own affinity group, or download an Obama news widget to stay current, or get text-message updates on your mobile phone, etc. This list goes on. But the important thing to learn here is - Barack Obama’s campaign is a sign of things to come. It involved and connected voters in new ways, allowing mass participation in politics on an unprecedented level.
Now, let’s forget about the politics for the time being. Have you ever had chance to look at one iPhone app – the barcode scanner? This app is a live example of the future of collaboration. Using this app is really simple. You just have to scan the barcode of the product that you like, using your iPhone camera, and it will show you the price of the exact same product in other stores. I personally think that this is the future of collaboration. In the future, people will use technology as their primary resource for collaboration. Doctors will be able to see your complete medical history by just one click; Universities will be able to see your transcripts from another University in a second; business will be able to accurately predict the demand of their consumers. Those days are not far away, when your Doctors will be able to see your payback capacity (credit history) before operating on you.
I hope my article was helpful, and I am eager to hear your feedback. Thanks. – Bhavin Gandhi
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