Onsite VS Offshore: Is That Even The Right Question To Ask?
Talk about technology (or have anything to deal with technology) and hiring developers becomes essential for any business, service vendor, or startup.
It feels that the world today has acute shortage for good, dependable talent. As Marc Andreessen puts it:
However, it’s not just the Silicon Valley where the dearth of good developers is a familiar occurrence. At Kalpavruksh, we know that IT talent demand crunch is a global problem.
Meanwhile, most entrepreneurs get hiring all wrong
Offshore and onsite hiring are indeed two different strategies for businesses to start looking for talent. The fact than more than 99% of the resumes that’ll land on your desk will never make the cut will not make matters any easier.
Officially, we only aim to recruit the top 2% of every incoming resume or potential candidate who ever walks in, and that makes it just as hard for us to find great talent all over the world.
It’s just that we made it our business to find good talent. Finding good developers is not a business function that we relegate to the human resources department; it’s in our DNA.
But really, of the offshore hiring model and the traditional onsite hiring model – the two modes of hiring available to businesses all over the world today, which one is best? When do you choose one against the other? Or can business straddle both the options?
Let’s find out:
For one, Ashok Korwar – a management consulting growth Analyst — helps solidify an important point that every IT business or any business which has anything to do with IT development wrestles with:
In short, it is profit, the absolute dollar amount of profit, that is key.
Onsite work allows businesses to work as close-huddled teams and it leads to better communication, instant availability of resources, and is much less complex to deal with.
According to Ashok, onsite business models are certainly better positioned for higher revenue and profits on a sustainable level.
We often face lack of local qualified Microsoft Dynamics CRM developers and specialists – in terms of both quality and capacity when we try the offshore option. We usually suggest a prolonged hunt for local qualified Dynamics CRM developers for our clients using the onsite model.
However, this isn’t a cookie cutter strategy. We just can’t apply one of the choices as if it’s a template. if onsite hiring management were so simple, there would never have been anything like outsourcing or near sourcing.
For some business offshoring does make sense
In cases where there’s an acute shortage of talent for specific domains, lack of sufficient capital to manage onsite work, or even the lack of leadership required to propel a massive volume of work that company gets, regardless of size.
Lack of communication, varying time zones, longer waiting times, cultural differences, and many other reasons are cited usually as potential problems that come up for offshoring.
That’s just not the truth, on hindsight.
Plenty of businesses currently rely on offshoring model to help move projects towards completion, to handle backend processes, to streamline business process outsourcing, and even knowledge process outsourcing.
Apart from on-demand onsite talent management for IT developers across domains, we also have a solid offshore talent management setup for clients (starting from a development center in India and all the way to locally established IT talent hubs across the Scandinavian region).
The key to getting the decision right about whether to choose onsite or offshore options is to:
- Fundamental business strategies
- Understand and evaluate risks & sustainability
- The absolute profitability of the business – given both the choices
- Ability to lead, manage, and control disparately located teams
- Quality of training, delegation, and project management, and more.
It’s not about this or that; it’s about what the core operations of your company are, the capital you have available for deployment, the strength of leadership, and the availability of talent pool.
What works for you: Onsite Hiring or offshoring?