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Frequently asked questions

Below are answers to questions which may affect your life if you are considering offshore ITstaffing.

How quickly can I terminate the contract?

This depends on the contract you sign with us. We have short term (day, week, up to 3 months) and long term (3, 6 or more months) contracts. In the long term option, you can always replace the person you hired in case of unsatisfying results. For a small monthly premium, we can agree on cancellation with a week notice period.

Can you provide highly skilled and technical Employees?

Yes. We have offices in Ukraine, Moldova and India. Together, those countries constitute a very large pool of highly skilled people. Our brand promise is that we always find you the right person for the right position.

What happens if I am not satisfied with the Employee I hire?

We ask you to assess the employees performance every month and have daily and weekly meetings, to ensure that we will know that you are unsatisfied + have ways to improve performance. If you stay unsatisfied, we will replace the person or you can cancel the contract (if you agreed on the option to cancel upfront).

What is the difference between nearshoring and offshoring?

Offshoring is the most commonly used term to describe 'moving a business process to another country' and this could imply a country far away or closer by. 
Nearshoring describes moving a business process to a geographically nearby country (e.g. a German company moves some work to a Ukrainian company). 

A pletoria of related terms such as 'farshoring' (moving a process to a far away country), bestshoring (moving to a country which fits the requirements of the company best), 'rightshoring' (identical to bestshoring) has been invented by the industry. The (perceived) benefits of nearshoring are the smaller time difference, shorter travel time and bigger cultural similarities.

I hear that offshoring has a lot of problems, is that different for Bridge?

Many problems are caused by wrong process and wrong people. In most cases, people also talk about 'outsourcing', which has a higher likelihood to cause problems. We place strong emphasis in enabling you to find the right person for the right position through our offshore staffing solution. You have full control over the selection procedure and we also add our best practices to this procedure to ensure we will make the right match. We have a very strong process that makes the transition and the cooperation smooth.

This process starts before you actually work with your offshore team by means of a workshop. During the workshop we determine whether a usable process is already in place and if not, we plan to develop it; we develop function profiles; we develop rules for attendance and timing of daily and weekly meetings. All to start the cooperation with clear expectations from both sides. During the cooperation you will be assigned a process manager from our development office whom you will meet weekly to discuss problem, progress and improvement. We also assign an account manager from your own country in your own language who will 'bridge' the culture and language barrier.

Why would I consider IT offshoring?

Are you experiencing difficulties in finding the right people to fill your positions? Offshore IT staffing  can solve this problem and can fuel the growth and profitability of your company.
Is it expensive to hire the skilled talent you need (e.g. in the case of IT people)? You can bring down your costs by hiring the people offshore instead of your home country.  
Is your company based in a country where local labor laws make it hard to hire and fire people? Offshoring will bring you flexible contracts and by working with an offshore supplier, you move the problem of hiring and firing to the vendor.
Are you frequently hiring external companies or individuals to perform certain tasks or projects? Through offshoring you can engage experts faster, in the quantity and quality you want (access to much more capacity and skills) and at substantially lower costs.

Are you looking to outsource an IT project or process? Then you might consider engaging an offshore firm that could perform the project or process better and/or at lower costs than the local outsourcing company you consider.

How big should my project be for offshoring?

The size of the project doesn't matter for the success of offshoring. But if you have only occasional small projects, the effort to create a succesful cooperation might be too big. Ideally, you should have enough work to hire a full time employee to start working with you. Once you are confident with this person and the right process is in place, he or she can do a project of any size.

Is it better to set up a captive center or work with a supplier?

To decide on this, I believe you need to do the following:A. Build a business case and compare which option is most profitable.B. Question yourself: Am I ready to learn how to do it myself, risk stepping in the traps that could be avoided, run the risk of having offshore employees, office and registered company?.

TIP:If you choose a supplier: ensure that you have a good ‘feeling’ (visit their office, talk to them and don’t look at pricing and facts only)

How can I minimize the risk when we start offshoring?

Focus on our 5 P's:1. People: ensure that you get the right person for each position + that you have control over what those people do. Also ensure that you have a full time person accountable for the cooperation on your side (a technical or project manager).2. Process: invest time to create a structured and documented process in your own company + for the cooperation.3. Preparation: take the time to prepare, make sure that your management team has made a conscious strategic decision to go for offshoring and that enough time is available to make the endeavour work. Take time to select the right vendor that matches your criteria + culture.4. Performance: develop clear performance indicators for all people involved, measure, report and discuss them regularly.5. Profit: develop a clear business case that can be reviewed regularly to ensure the cooperation remains profitable.

What is offshore staffing?

Offshore staffing is a service through which you hire external people from an offshore country. Instead of having to set up your own office in another country and organize everything to ensure operations, you hire the people from another company. You have direct control over the people you hire, while everything related to recruitment, HR, taxes, salary payment, office equipment, etc. is the responsibility of the vendor. This way of working avoids big upfront investments and risks involved with having your own employees and company in a faraway country.

The big advantages compared to local staffing solutions are substantially lower costs and access to a much bigger pool of talented people.

Is offshoring only about cost cutting?

No. While many companies still offshore to save costs, the bigger benefit lies in having access to a large pool of skilled people. As many companies struggle to hire the right person for the right position, caused by the shortage of people in their local labor market, the driver of offshoring becomes the search for talent. Obviously, the lower costs are a big benefit too.
Other benefits of offshoring include: faster time to market, focus on core business, economies of scale, specialization, flexibility in scaling up or down.

How do I know if I am ready for offshoring?

To assess your offshore readiness, you can start by asking yourself five fundamental questions:
1. Do I have a real problem that can be solved by going offshore2. Do I have strong and documented processes?3. Do I have the right management in place?4. Is my company stable and ambitious?5. Am I ready to invest extra (management) time to make the new situation work?
To read more background on each of these questions, you can read this article: http://bridge-outsourcing.com/en/outsourcing/ready-offshoring-nearshoring

We are a small company, isn't offshoring only for big multinationals?

Big multinationals were the pioneers that started with offshoring. But the benefits and possibilities are abundant for smaller firms as well. While it is hard to give an exact number to identify the size your company needs to 'fit' offshoring, a rule of thumb is a turnover of more than EUR 1 million and minimum 10 employees. Besides, you need to be able to assign a full time person to head the offshore operations and the management team needs to make a conscious strategic decision to make offshoring work (accompanied with the readiness to invest enough management time to make it work).

How do I select the right offshore vendor?

Most big organizations go through a formal cycle by setting up a Request For Information (RFI), followed by a Request For Proposal (RFP). While a structured approach can be appropriate for certain companies, it often ignores one important aspect: the human factor. Eventually, if you consider offshoring a business process/task/function (services), all the work will be done by people. And if the people don't match, the cooperation won't succeed. The steps that you can go through to select the right vendor:

1. A good starting point would be to set up a list of specific criteria (such as size, domain focus (technology/process), track record, customer referrals, country, local representation, managers from your country in the offshore location, legal structure etc.) that you would like the company to comply with. With those criteria, the matching vendors can be shortlisted.2. After that, the human aspect starts playing an important role and it's relevant to explore: can you influence who will be working on your project or team? what are the recruitment procedures of the vendor? do they have local representatives that you could meet? can you visit their office? can you speak to the management team? Is there a cultural 'fit' between the people in both companies? Do you like them?3. It is also advisable to build a business case (where you focus on both costs and extra income) and place each vendor in that case to calculate the value.

How do I prepare for offshoring?

The most crucial thing you can do to make offshoring work is: prepare well. To first think before acting (to start a project or move the process offshore). It lies in the human nature and especially the entrepreneur's or manager's nature to just ‘get going’, because you want to see results. The two most important aspects of preparation are: People and Process. To read more on this, read this article.

What are the risks involved in offshoring?

Because offshoring requires quite some changes in the way people work, many risks are associated. Some of them can be attributed to outsourcing and would be there also if the supplier would be in the home country or next door. Some of the risks:

1. Higher costs than projected (or lower cost savings than projected); these higher costs could result from a pletoria of factors such as wrong selection of a supplier, delays in product launch, problems in transferring the process to the new offshore team, more management time needed to manage the transition or even the operations.2. Project failure; because it is complicated to communicate requirements to an offshore team and to cooperate with remote people from other cultures, sometimes expectations are not met, deadlines are not made, the quality is lower than expected etc.3. Expectations mismatch; this risk relates to communication; especially across cultures and languages it is hard to get people on the same page and the results might not be aligned with expectations (more on this topic in this article.4. Low quality; if you chose the wrong supplier, the wrong people on your team or lack of properly documented and communicated processes, the result can be lower quality than you would expect.

By acknowledging these risk and involving people who know what instruments can be implemented to avoid the risks, the risk can be mitigated.

What are the key success factors in offshore outsourcing?

There are 5 key factors that determine success in offshoring:1. People (you need to have the right person doing the right things in your projects.).2. Process (There needs to be a common understanding of ‘how we work’).3. Preparation (Invest time in meeting the key people on your vendor’s side, to define processes, to select the right people in your team, to prepare contracts, to define projects, to get your existing organisation ready for the new situation).4. Performance (All the people working in the cooperation should create productive output and this needs to be measured).5. Profit (Before and during the cooperation, the bottom line should be that offshoring brings your company profit).

To read more about the 5P's of offshoring: http://bridge-outsourcing.com/en/offshoring/wondered-key-success-factors-offshoring 

How do I deal with communication across borders and distance?

Communication is a very broad term that could mean many things. To streamline communication, the best starting point is 'process' (this way expectations are clear and everybody knows what to do). Whereas the process contains many ingredients that all impact communication, there are three ingredients that lay a fundament for smooth communication:

1. A tightly scheduled rhythm of daily and weekly meetings.2. A solid online project management tool.3. A set of clear guidelines on how to develop requirements.Read more

I often hear that the quality produced by offshore companies is very low?

Quality is mainly the result of people and processes. Get people and processes right and your chances on getting the quality that you expect is very high. Most offshoring deals are pure outsourcing: a project or process is moved to another company in another country. The outsourcer puts the project or process in a 'black box' and expects to get a certain output, but has (almost) no influence on who's working on the project or process and how the work is done. Frequently, the input that goes into the black box (requirements) is hard to define, but is sent in nonetheless. The output (expectations regarding performance levels and quality) is also hard to define. This often leads to disappointments and missed quality expectations. In order to assure that quality is as expected, it is important for you as an outsourcer to have strong processes in place in your company as well as a strong process that will determine the cooperation with the offshore team. Besides it is important to have control over the selection of people that will work in your team and preferably total control over the day to day management of those people (unless you outsource because you want that project/function/task to be gone from your own organization).

What sets Bridge Outsourcing apart from the others?

1. We have European management with representatives in the Netherlands, Sweden and Germany.2. We have Europeans in our office in India.3. We have both offshore (India) and nearshore (Ukraine and Moldova) offices.4. We have vast knowledge about how to manage offshore people, captured in strong processes.5. We focus on staffing solutions.We make 2 key promises to you:      1. We will find you the right person in the right position at the right price.      2. We deliver personalized support to make the transition to the new offshore situation smooth.6. You have direct management control: no layers of management in between you and your offshore people.

What are the benefits of offshoring?

The two primary benefits of offshoring are cost savings and access to high skilled talent. The wages and other operational costs (office rent, hardware, external services) are lower in developing countries than in developed countries. By buying services from an offshore supplier or by setting up your own office offshore, you can reduce the costs involved in the specific business process or function you offshore. Many developing countries like India, China, Ukraine and many other countries in Eastern Europe and Asia, have big labor pools. Western companies often have difficulties finding the right person for the right position in their home country. By tapping into the offshore labor pools, it becomes easier to find highly skilled people needed to create value.
Secondary benefits of offshoring and offshore outsourcing include: faster time to market (because more people can be involved, products can be released in a shorter time span); focus on core business (by outsourcing non-core processes, the company frees up time and energy to excel at what they are good at); economies of scale (because the vendor serves more customers, economies of scale can be realized which the company on its own can't realize); specialization (the vendor specializes in a certain process and becomes very good at it, which benefits the outsourcer).

What is offshoring?

Offshoring is the relocation of a business process, function, task or project to another country.Usually for offshoring services (such as IT services move to India), but it can also go toproducts (think of a factory moved to China).

Two common types of offshoring are:

     Offshore outsourcing: A company pays a project or process to another company in another country.
     Setting up a branch office abroad: the company has its own office and hire its own staff.

A third form is:

     Offshore staffing: a company hires people with an organization in another country andmanages these people themselves, as their own staff. This is what you do when you turn on Bridge.

On Wikipedia you can read more about the definition of offshoring: http://en.wikipedia.org/wiki/Offshoring