Offshore development centres appear ideal on paper. Six months later, communication is messy, deliveries are delayed, and leaders are frustrated. So, what went wrong?

Most offshore development centers (ODCs) do not fail due to a lack of talent, location, or cost; they fail because they were considered as shortcuts instead of a strategy. Here, we explore some important reasons why ODCs fail and effective strategies that ensure your ODC is successful.

Why ODCs Fail?

• Communication Gaps

ODCs often face challenges due to geographical distance, language barriers, and time zone differences. It may result in miscommunication about project requirements and progress, which may result in outcomes that differ from expectations.

• Cultural Differences

ODCs also fail due to cultural differences and varying work cultures that hinders organizational progress. For example, delays in decision-making, intermittent reporting, and quality standards may result in inaccuracy and inefficiency.

• Insufficient Requirement Definition

To ensure the success of your ODC, it is crucial to accurately define requirements right from the start. If requirements are ambiguous or frequent specification changes are required, it can impact the costs and result in time overruns.

• Inadequate Quality Control

Ensuring the leadership and management team in your ODC is experienced is important. Lack of adequate skills and quality checks may result in under-par product deliveries, which may require incurring additional costs and time to rectify the errors.

• Lack of Project Management

An important aspect that ensures the success of ODCs is efficient coordination and progress management between the onshore and offshore teams. Lack of project management may result in delays and other problems that may surface too late.

Strategies to Avoid ODC Failure

• Defining Clear Requirements and Documentation

Prior to starting operations, it is vital to define clear and detailed requirements and document these. It ensures offshore teams accurately understand the project requirements and proceed with its fulfilment. Any modifications must also be documented and shared to prevent communication gaps.

• Understanding and Respecting Cultural Differences

An important strategy to ensure your ODC succeeds is to understand and respect the differences in culture and working style of the offshore team. For example, scheduling tasks as per local holidays and work habits helps to enhance employee motivation. Additionally, showing appreciation and regularly providing effective feedback helps to develop trust.

• Robust Quality Control

Implementing clear processes and protocols to review and test the tasks is crucial to maintain superior quality. Offering training and technical support when required will help the offshore team develop skills they may be lacking.

• Proper Project Management

Adopting project management tools can help business leaders visualize task issues and progress to avoid delays and time overruns. Assigning an experienced project manager who coordinates between the onshore and offshore teams ensures early detection and timely resolution of issues before they become big and unmanageable.

• Working with an Experienced Partner

Partnering with an experienced local service provider is one of the most effective strategies to ensure the success of your ODC. While choosing your partner, you must evaluate their track record, technical skills, and communication processes to ensure a smooth and efficient operation.

If you are facing any challenge with your ODC or looking for a reliable accounting outsourcing India partner, drop a mail on info@greenvissage.com or call on +91 8237857853.