Top 5 Challenges to Outsourcing Design Work Overseas
In today’s environment of protecting the bottom line, some companies are making the decision to outsource work overseas. And for some, offshoring and outsourcing overseas has proved beneficial. But, before you decide to move your graphic design or web development work overseas, carefully consider the risks and challenges this may present.
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1. Language barrier.
The most obvious challenge is understanding and communicating with overseas contractors. Accents and lack of English and grammar skills can make it difficult to discuss expectations and details of the project. Subtle language and cultural differences can also impede the business relationship. For example, many Indians say, “yes,” as an acknowledgement, the way Americans sometimes say, “okay,” without actually suggesting that they have agreed to do something.
2. Time zone.
Most communication with an overseas contractor will need to be done outside of normal business hours. When you are in the office, the contractor will be in bed. For example, India is 13.5 hours ahead of California, so if you need to talk with the contractor, calls must be made between 8pm and 3am. Urgent requests may take longer for a response.
3. Risk of stealing intellectual property.
Companies will continue to trade off the benefits of low-cost labor for the risks of intellectual property theft without fully understanding the implications. Product knowledge gained by a contractor can be passed on to a competitor and also retained by the contractor. Source code developed by the contractor at the client’s request is kept by the contractor. This leads to serious issues with regards to licensing and copyright. India has recently taken steps to tighten laws around data protection for foreign work handled by Indian companies and for instilling harsher penalties for data breaches. However, there are far more countries that do not regard intellectual property protection as a priority.
4. Differing work ethics and quality standards.
Because of communication and cultural issues, often the finished product does not meet with existing quality standards. Outsourcing a project requires a great deal of trust and the quality of work varies considerably. Errors can range from simple spelling/grammar issues to major programming problems. Since the contractor will be working for a fixed price, motivation will be to decrease their expenses and time spent on the project in order to turn a profit.
5. Differing business policies and terms.
When working with overseas contractors, it may be difficult or impossible to have your contract terms honored. If a contract is signed, there may not be any recourse for delivering a poor product. Each country has their own business policies and terms, so it may be beneficial to do research before engaging in any contract work overseas. Also, if the outsourcing company requires you to sign their contract, be aware that anything not covered in the contract will be the basis for you to pay additional charges. In this case, it may be in your best interest to hire a lawyer to review their contract before signing.
Though it’s tempting to take advantage of lower overseas labor costs, it may be a good idea to rethink your strategy. Depending upon your needs and expectations, hiring overseas contractors for graphic design or development work might end up costing more in the end, and could add new challenges to your plate.
Feel free to share any experiences you’ve had in working with overseas contractors and/or companies.
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