Offshoring can offer many benefits for businesses, such as cost reduction, access to talent, and market expansion. However, offshoring is not a one-size-fits-all solution, and it can pose significant challenges and risks for small companies.

Small companies that want to offshore successfully should consider the following recommendations:

Conduct research

Conduct thorough research and due diligence before choosing an offshore partner or location. Evaluate the potential benefits and risks of offshoring for your specific business goals, processes, and customers. Choose a partner or location that matches your culture, values, and standards.

Establish clear expectations and communication

Establish clear expectations and communication channels with the offshore team. Define the roles, responsibilities, and deliverables of each party. Use effective tools and methods to communicate regularly, clearly, and respectfully. Provide constructive feedback and recognition.

Allocate resources for training and development

Invest in training and development of the offshore team. Provide adequate resources and support to help the offshore team learn and grow. Foster trust and loyalty by involving them in decision making and problem solving. Encourage creativity and innovation.

It is not impossible for small companies to offshore. In fact, it is encouraged as companies this size may benefit from like-minded offshoring companies as the latter is able to consolidate resources to benefit its clients.

The biggest deal breaker in offshoring is cultural mismatch. It is important to look for a company that not only matches your culture but is also able to bridge cultural gaps through training and ongoing support.

Lastly, an offshoring partner that listens and works out issues is important for small companies. The issues and challenges faced by smaller companies are unique from larger conglomerates, so it is important to look for a partner that understands your situation, able to relate to your challenges and works solutions through with you.