Several good ideas turn into nothing because entrepreneurs either lack the finances, lack focus on the business itself or speed of getting the product developed. These factors, together with the fact that many business ideas today involve the use of information technology, provides an obvious opportunity for entrepreneurs to look at the possibility to offshore the IT part in order to achieve the goals much faster and much cheaper.

As an entrepreneur with a good idea based on information technology either for the internet, apps for smartphones / tablets etc., it is often a challenge to get the product developed fast – even though it is being worked on around the clock, by a consultancy company or by own employees, it will take too long time getting the product developed within a reasonable cost. Besides that many entrepreneurs do not have the complete overview in the beginning, of what the solution should contain and how it should work hence the exact cost is not always know.

Therefore, for most entrepreneurs the use of IT offshore can be a really good solution. A solution that addresses both the immediate challenges of momentum and economics, but it also offers some more long-term benefits.
The immediate benefits are that they can start quickly. The IT offshore resources are often very well educated within the specific field hence they can contribute actively to the further development of the idea. Cost wise the rule of thumb is that the cost is about one third of what it will cost to hire European or GCC based employees and time wasted is typically limited.

The Danish company Xield was not able to find the right IT developers in Europe. The programming behind their system is extremely complex and only a few developers would be able to lift that task. They decided to try to offshore and ended up finding the perfect team in Cairo.

However, the more strategic benefits are also worth noticing. Many countries face a demographically difficult situation that they do not have sufficient manpower on the long run. The lack of skilled and economically available labor can therefore become a showstopper for many companies both now and in the coming years.
With an offshore strategy, it is possible to ensure easy access to talent on competitive terms, and as a start-up / smaller company, they also have access to a proper methodology and structure for development, which entrepreneurs often do not have the money for or time to establish.

When it’s so obvious to use IT offshore, why aren’t more companies using it – and using it successfully?
There are a lot of companies who do, but unfortunately there are also many who start working with partners or private individuals around the world who do not have the necessary experience to succeed the company’s project.
Our best advice is to choose a partner who can create a safe and stable framework for commitment and who can offer a service that meets some of the basic requirements.

When choosing an IT offshore partner / offshore location, there are some basic requirements that apply. It is possible to change many things, but geography is not one of them. Therefore, companies must pay attention to whether the travel time to the offshore destination and the time zone make sense to the company and the potential team involved. The interesting part of having a team in an “exotic country” quickly disappears when it requires sitting 10 hours aboard a plane, and the spouse’s patience for late conference calls typically also ends sooner or later. Applying IT offshore requires, like all other strategic decisions, dedication of time to finding the right solution for the company and ensuring that an offshore strategy does not expose one’s business to unnecessary risks and delays.

10 important things to keep in mind:

1. Many countries face a comprehensive challenge in obtaining qualified employees.
2. Offshoring ensures scalable setup for your company’s development.
3. Choose an offshore supplier with experience from more than one country.
4. Pay attention to time zones – hence travel time.
5. Pay attention to language skills.
6. Ignore the “smart” concepts and demand a flexible solution that fits your company’s needs.
7. Make the offshore team an integrated part of your organization – make sure that the supplier can deliver this.
8. Focus on cultural understanding in both your country and offshore.
9. Focus on communication, security and backup, GDPR compliance.
10. Require a financial comparison basis from your offshore supplier that includes all costs.

Learn more about what CrossWorkers can offer.