Industry Qs: 5 things you need to know about outsourcing overseas

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By outsourcing, your world gets bigger.

By outsourcing, your world gets bigger.

Outsourcing overseas is a whole other world. Brigham Tomco, founder of Lehi-based Zylun, shares five tips to get your feet wet.

The Why

Understand why you want to outsource. (Save money? Scalability? Access to resources?)

 

The Choices

Know your options. There are many ways to outsource that can affect the cost, timing, scalability and quality of output.

  1. Onshore vs. offshore.
  2. Self managed vs. outsourced management.
  3. Build your own offshore office vs. using an established offshore partner.
  4. Home-based vs. in-office.
  5. Project vs. hourly vs. full-time contractor.

 

The Manager

Do you have the right U.S. manager in place? Make sure your management team and direct managers are on board for outsourcing and have experience working with a remote team.

 

The Process

When teams are located thousands of miles away — and across potentially many time zones — internal processes and project management are key.

 

The Costs

Look at all of the costs (salary, legal, tax, infrastructure, distraction). In many countries, your infrastructure costs are more expensive than your labor costs. Many entrepreneurs don’t consider the cost of distraction when they setup an offshore team.

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