Organizations must overcome these offshore challenges in order to scale up their tech operation successfuly to Vietnam.
Offshore Challenges: Communication
Did you know that 70% of workplace communication is non-verbal? Through body language and facial expressions, we learn how serious an issue actually is; or the trust and confidence toward their company.
Unfortunately, offshoring your tech operations to another country means most interactions occur virtually via email, chats, calls, and video conference. There’s a pretty good chance that communication will suffer as there’s more layers and friction that hinder the flow of information.
According to a study conducted by Harvard Business Review, remote workers who don’t get to interact well tend to get incomplete stories, never the full picture and are more disconnected or alienated compared to onsite workers. Meaning it is one of the biggest disadvantages of offshoring tech operations that businesses have to overcome.
Offshore Challenges: Micro-management
It is a daunting challenge to get remote workers motivated to accomplish their tasks on time. The lack of physical presence can sometimes make you feel like you’re shouting into the wind in hopes that they will listen. And for those who claim to be working, you’ll have little choice but to take their words for it.
As a result, about 40% of managers expressed low confidence in their ability to manage workers remotely. This often pushes them into panic mode where extreme methods are taken to offset their doubt. Managers can start to develop an unreasonable expectation that those team members must be available at all times, ultimately disrupting their work-home balance and causing more stress on the job.
This, in turn, could create a negative spiral, where a manager’s mistrust leads to micromanagement, causing drops in employee motivation, further impairing productivity.
Offshore Challenges: Time Zone Differences
An interesting advantage of building up your tech team in other parts of the word is that project teams can “work round the clock” to optimize schedule and capacity.
However, it might be a real hassle to find a common meeting time that works well for all parties due to the time zone differences. Someone will always have to compromise by meeting outside their normal business hours.
This inhibits productivity and can cause tensions in the team. Additionally, monitoring your offshore team is difficult. Are they working during office hours or are they slacking off? Are your offshore developers able to fix a P1 bug in a timely manner?
Offshore Challenges: Cultural Barriers
It is obvious that cultural differences hinder effective communication, right across the project, from within the project team to external stakeholders.
This can be particularly challenging for tech talent from deferential cultures such as Vietnam who may feel less comfortable speaking up or sharing ideas directly, especially if they are new to the team or in a more junior role.
Moreover, the difference in culture value will also drastically impact the expectation and performance result. For example, Japanese prefer a long detailed report and being on time as a way to show dedication. On the other hand, Vietnamese offshore developers are more laid-back and openmind. So if you are offshoring your tech operation into Vietnam, having a flexible timeline will encourage them to perform better instead of a strict schedule like japanese.
Offshore Challenges: Remote HR Management
Most startups and SMEs struggle on managing their offshore developers, which are often be-prioritised from their core activities. This complexity is multiplied when it comes to remote workers in another country, where the culture and regulatory compliance can be drastically different from yours.
Not only do these gaps create risk that can prove to be costly for companies, they also mean the companies need a dedicated HR department to effectively manage their teams across the globe. In fact, more than 80 percent of small business owners have to handle HR on their own – and more than 30% weren’t sure they were doing everything correctly.
Offshoring part of the IT operation to other countries has become one of the common strategies for startups and small businesses to scale-up their tech capabilities in an efficient and scalable fashion. But to make the most out of it and maximize the benefits, it is crucial for companies to identify any potential offshore challenges and eliminate them.
Fortunately, you do not have to tackle these challenges alone. By partnering with a trusted venture support service provider, you can swiftly access the market and build up your own offshore team in no time.