Offshoring Center of Excellence (COE)
In a nutshell, offshoring — also known as “outsourcing” — is engaging another business to provide deliverables, such as hiring an accountant to handle all your business taxes. While most outsourcing is “offshore,” many companies outsource to domestic firms or subsidiaries. But offshore outsourcing is, by definition, done by workers overseas and is generally handled by U.S.-based companies that employ workers in foreign countries. (Small business owners, in other words, do not have to interact with a foreign company.)
As Forbes put it, “Revenue operations was created as an “end-to-end process of driving revenue, from the moment a prospect considers a purchase (marketing) to when you close the deal (sales) to their renewal and upsell. The result of this orchestration is faster growth and more profit.”
So the next question is: do you know if building a offshore team would help your business?
While successful offshoring sounds easy, it requires a solid strategic framework to ensure successful execution that creates value for the business. Before reaping its benefits, you must develop an effective and transformative outsourcing strategy to seamlessly integrate your dedicated remote team with your onshore team, and create a system that improves your overall operational efficiency.
How we Help
Offshore Center of Excellence Maturity Assessment & Roadmap Development
Our team likes to start with an assessment of your current of offshoring needs. Depending upon the challenges outlined in our discovery we can focus on the end to end solution or a few pain points to optimize your resource engine. We will work with you drive a end to end roadmap that drives long term resourcing allignment, examples include:
- Define objectives and goals
- Evaluate current operations:
- Market research and vendor selection: Develop a business case
Offshore Center of Excellence Integration & Transition
We can work with you to drive point change if you already now your challenge, examples include:
- Negotiate and finalize contracts:
- Develop transition plan
- Implement transition plan
Offshore Center of Excellence Management
We can provide full time and part time help to implement and manage your Offshore Center of Excellance. We have seasoned professionals that understand our methodology and approach and are ready to help. you on your journey, examples include:
- Monitor performance
- Relationship management
- Continuous improvement
Drivers For Change
There are several key drivers for offshoring, which is the practice of relocating business operations to another country, typically to take advantage of lower labor costs or access to specialized skills and resources. Here are some of the most common reasons companies choose to offshore:
Cost reduction: This is the most common driver of offshoring, as companies can often find lower labor costs, lower taxes, and other cost advantages in other countries. For example, a company might offshore its manufacturing operations to a country with lower wages, or it might offshore its customer service operations to a country with a lower cost of living.
Access to skilled talent: Some companies offshore to gain access to specialized skills or resources that are not available in their home country. For example, a tech company might offshore its software development to a country with a large pool of skilled programmers, or a pharmaceutical company might offshore its research and development to a country with a strong scientific community.
Market expansion: Companies can also offshore to expand their reach into new markets. For example, a company might offshore its production to a country with a large and growing consumer market, or it might offshore its sales and marketing operations to a country with a different language and culture.
Flexibility and agility: Offshoring can also help companies become more flexible and agile. By spreading their operations across different countries, companies can reduce their exposure to any one risk factor, such as a political or economic crisis.Additionally, offshoring can allow companies to take advantage of different time zones and work schedules, which can improve their overall efficiency.
What functions can be leveraged Offshore?
- IT Services
- IT Management
- Human resources
- Payroll services
- Accounting and taxes
- Legal services
- Corporate maintenance
- Investment management, such as 401(k) oversight
- Setting up benefits to enhance employee retention (e.g., health insurance plans)
- Creative services (e.g., web or graphic design)
- Marketing
- Virtual assistants (e.g., setting up travel or scheduling meetings)
- Customer service
- Call centers
The reality of todays offshoring world
Start with one
Start with one
Start with one
According to Clutch, 37% of small businesses have opted to outsource at least one business process, while 59% of global companies
IT Services
Start with one
Start with one
CIT services make up around three-quarters of all global outsourcing contract values (ISG)
Cloud
Start with one
Cloud
90% of companies consider cloud computing as a key enabler in their outsourcing efforts (Deloitte)
How does Shoring Help?
Savings
Process Efficeincy
Process Efficeincy
McKinsey Global Institute estimates that by 2025, offshoring of business services could save companies up to $3.7 trillion annually.
Process Efficeincy
Process Efficeincy
Process Efficeincy
A 2019 survey by Everest Group found that 70% of companies reported achieving improved efficiencies through offshoring.
Speed to Market
Process Efficeincy
Speed to Market
Time zone differences can enable 24/7 operations, potentially speeding up processes and project delivery.
So what's next?
Predicting the future of offshoring is complex, as it's influenced by various economic, political, and technological trends.
Shifting Cost Advantages: While labor costs remain a driver, automation and rising wages in traditional hubs like China are pushing companies to explore new destinations with lower overall costs, including Southeast Asia, Eastern Europe, and Africa.
Nearshoring: Concerns about supply chain disruptions and geopolitical tensions are boosting nearshoring, where companies relocate operations closer to home for better control and faster response times. Mexico, for example, is attracting significant investment.
Automation and AI: These technologies are automating tasks previously considered "un-offshorable," like knowledge work and engineering. This could see more high-skilled jobs move offshore, impacting skillsets needed in domestic workforces.
Skills and Talent Gaps: As automation disrupts some jobs, new opportunities arise in areas like data analysis, cybersecurity, and managing remote teams. Businesses will need to adapt their workforces and training programs to stay competitive.
Sustainability and Regulatory Compliance: Increasing pressure on companies to minimize environmental impact and adhere to global regulations could affect offshoring decisions. Some countries may offer advantages in terms of sustainable practices and ethical labor standards.
Overall, the future of offshoring is likely to be more nuanced and diversified, with a mix of offshoring, nearshoring, and onshoring depending on specific needs and contexts. Companies will need to be flexible and adaptable to navigate these shifting trends and make informed decisions about their operational strategies.
Three Pilars of the Offshoring Center of Excellence
Clear Expectations and Shared Purpose
Effective Communication and Collaboration
Effective Communication and Collaboration
- Define Your Goals: Clearly outline the team's objectives, responsibilities, and performance metrics. Ensure both onshore and offshore team members understand how their work contributes to the bigger picture.
- Set Expectations: Be transparent about work hours, communication protocols,deliverables, and decision-making processes. Address cultu
- Define Your Goals: Clearly outline the team's objectives, responsibilities, and performance metrics. Ensure both onshore and offshore team members understand how their work contributes to the bigger picture.
- Set Expectations: Be transparent about work hours, communication protocols,deliverables, and decision-making processes. Address cultural differences and time zone challenges upfront.
- Align Purpose: Foster a shared vision and a sense of belonging for all team members, regardless of location. Create opportunities for interaction and collaboration to build trust and understanding.
Effective Communication and Collaboration
Effective Communication and Collaboration
Effective Communication and Collaboration
- Overcommunicate: Regular, clear, and open communication is crucial. Utilize various channels like video calls, instant messaging, and project management tools to stay connected and avoid misunderstandings.
- Embrace Flexibility: Adapt communication styles to cater to different cultural norms and communication preferences. Be mindful of time
- Overcommunicate: Regular, clear, and open communication is crucial. Utilize various channels like video calls, instant messaging, and project management tools to stay connected and avoid misunderstandings.
- Embrace Flexibility: Adapt communication styles to cater to different cultural norms and communication preferences. Be mindful of time zone differences and schedule meetings at mutually convenient times.
- Invest in Technology: Utilize collaboration tools that facilitate team communication, document sharing, and project management. Invest in training to ensure everyone is proficient in using these tools.
Building Trust and Respect
Effective Communication and Collaboration
Building Trust and Respect
- Foster Empathy and Inclusion: Recognize and appreciate cultural differences.Actively listen to team members and create a safe space for open communication and feedback.
- Invest in Relationship Building: Organize virtual team-building activities and social events to encourage interaction and build rapport. Celebrate successes and milestones
- Foster Empathy and Inclusion: Recognize and appreciate cultural differences.Actively listen to team members and create a safe space for open communication and feedback.
- Invest in Relationship Building: Organize virtual team-building activities and social events to encourage interaction and build rapport. Celebrate successes and milestones together, even across time zones.
- Provide Ongoing Support: Offer training, development opportunities, and mentorship programs to help offshore team members feel valued and empowered.
Teton Cloud Consulting's Success & Maturity Model Framework
Teton Cloud Consulting’s Success framework focuses on leveraging a three-phase approach to drive accelerated Success in the art what’s possible across our entire Services Portfolio. Our Success Framework follows a standard approach across our entire portfolio. Each Phase follows a standard approach to drive a consistent outcome for our customers. Overall our framework is a valuable tool that improves the quality and efficiency of our approuch. Our framework benefits our clients by providing a structured approach and censuring a thorough analysis and clear communication of our solutions. We take our Success Framework and align it to our Maturity model to drive a clear baseline of your Success Mindset. This baseline provides the roadmap for our customers journey across our entire service portfolio.
Teton Cloud Consulting's Success & Maturity Model Framework
How do we apply our Success Framework?
Teton Cloud Consulting’s Success framework focuses on leveraging a three-phase approach to drive accelerated Success in the art what’s possible across our entire Services Portfolio. Our Offshoring Consulting Solution leverages this framework to bring a proven methodology to drive our clients desired results.
Our Approach to a Offshoring Center of Excellence
Phase 1: Baseline your Success Mindset
Phase 1: Baseline your Success Mindset
Phase 1: Baseline your Success Mindset
- Define objectives and goals: What do you hope to achieve by offshoring? Cost reduction? Increased efficiency? Access to specialized skills?
- Evaluate current operations: Identify the processes or functions that are candidates for offshoring. Assess your internal capabilities and resources for managing an offshoring initiative.
- Market researc
- Define objectives and goals: What do you hope to achieve by offshoring? Cost reduction? Increased efficiency? Access to specialized skills?
- Evaluate current operations: Identify the processes or functions that are candidates for offshoring. Assess your internal capabilities and resources for managing an offshoring initiative.
- Market research and vendor selection: Research potential offshoring destinations and service providers. Develop a shortlist of qualified vendors based on your criteria.
- Develop a business case: Estimate the potential costs and benefits of offshoring. Conduct a financial analysis to justify the investment.
Phase 2: Reimagine your Mindset
Phase 1: Baseline your Success Mindset
Phase 1: Baseline your Success Mindset
- Negotiate and finalize contracts: Negotiate the terms of service with your chosen vendor. Ensure that the contract clearly outlines your expectations and the vendor's responsibilities.
- Develop transition plan: Create a detailed plan for transitioning the selected processes or functions to the offshore provider. This plan should address tra
- Negotiate and finalize contracts: Negotiate the terms of service with your chosen vendor. Ensure that the contract clearly outlines your expectations and the vendor's responsibilities.
- Develop transition plan: Create a detailed plan for transitioning the selected processes or functions to the offshore provider. This plan should address training,knowledge transfer, and communication strategies.
- Implement transition plan: Execute the transition plan according to schedule.Address any challenges or issues that arise during the transition.
Phase 3: Execute Success
Phase 1: Baseline your Success Mindset
Phase 3: Execute Success
- Monitor performance: Track the performance of the offshoring arrangement against your agreed-upon metrics. Identify areas for improvement and make adjustments as needed.
- Relationship management: Build a strong relationship with your offshore provider. Communicate regularly and address any concerns promptly.
- Continuous improvement: Continuou
- Monitor performance: Track the performance of the offshoring arrangement against your agreed-upon metrics. Identify areas for improvement and make adjustments as needed.
- Relationship management: Build a strong relationship with your offshore provider. Communicate regularly and address any concerns promptly.
- Continuous improvement: Continuously review and optimize your offshoring arrangement to ensure that it remains aligned with your business needs.
Offshoring Center of Excellence Score Cards
We take our Success Framework and align it to our Maturity models to drive a clear baseline of your Success Mindset. This baseline provides the roadmap for our customers journey across our entire service portfolio.Our Scorecard follows a four stage approach that baselines your maturity and provides a framework to improve your success.
Offshoring Center of Excellence Score Card Stages
Stage 1: Siloed
Stage 3: Accelerated
Stage 2: Efficient
Limited experience with offshoring, reactive approach to challenges
Stage 2: Efficient
Stage 3: Accelerated
Stage 2: Efficient
Standardized processes in place, but limited vendor selection and management capabilities
Stage 3: Accelerated
Stage 3: Accelerated
Stage 3: Accelerated
Proactive approach, established vendor selection criteria, and performance monitoring frameworks.
Stage 4: Proactive
Stage 3: Accelerated
Stage 3: Accelerated
Strong vendor relationships, continuous improvement in communication and collaboration, focus on maximizing benefits.
Offshoring Center of Excellence Maturity Score Card
Offshoring Center of Excellence Evaluation Score Card
An Offshoring Evaluation Scorecard is a structured tool designed to help organizations systematically assess the suitability of specific tasks or projects for offshoring. It facilitates a data-driven approach to determine whether the potential benefits of offshoring outweigh the associated risks and challenges. We leverage both the maturity score card and evaluation matrix to drive a end to end outcome for our customers.
Offshoring Center of Excellence Evaluation Score Card
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