3 Reasons Companies Are Regretting Offshoring in 2024
02/07/2024
The allure of offshoring, with its promise of cost reduction and operational efficiency, often hides the unfortunate reality of an impersonal and task-oriented partnership that can derail projects from their timelines and budgets. These delays are not just a minor setback but can place companies at a severe competitive disadvantage. “The scenario is stark: while your project is stuck in delays, your competitor’s product or service is already engaging with customers and winning brand loyalty,” says Jeff Chung, CSO of Arkane Digital.
In this post, we unpack the top three reasons behind companies’ growing regret towards their offshoring decisions in 2024.
The Pitfalls of Offshoring
1. Time Zone Differences & Communication Hurdles
The global nature of offshoring introduces significant time zone differences, which can lead to delays and inefficiencies. Critical updates or urgent changes can be hindered by the need to wait for offshore teams to begin their workday. Moreover, language barriers and cultural differences can cause miscommunications, complication project management and execution.
2. The Illusion of Cost-Effectiveness
Offshore contracts may appear financially appealing at first glance, with attractive hourly rates promising substantial savings. However, these contracts often lack flexibility, binding companies to purchase a predetermined number of hours regardless of actual need. The hidden costs become apparent as time delays and quality issues surface, undermining any initial savings and giving competitors a market advantage.
3. A Transactional Approach to Projects
Offshoring typically follows a task-oriented model, where projects are treated as tasks to be completed rather than a collaborative endeavor. This approach can lead to a disconnect between the offshore team and the client’s objective, with the offshore team focused on deliverables rather than the project’s strategic importance. Such a model stifles innovations and leaves clients handcuffed to inadequate solutions without the support or knowledge needed for independent operation following project completion.
The hidden costs become apparent as time delays and quality issues surface
How Arkane Digital Provides A Superior Alternative to Offshoring
Arkane Digital distinguishes itself from the offshore model by prioritizing a transparent, customer-centric partnership:
- High-Touch Consultancy: Whereas offshore teams will quote your website delivery for 10k hours and leave it at that, our team takes a detailed approach. We provide a comprehensive breakdown of the project timeline, explaining our rationale. This ensures you understand the full scope of the project and the strategic planning behind each phase.
- Flexible Contracts: We offer flexible contracts that are tailored to your needs, ensuring that your projects are not only completed within budget but also align with your timeline, avoiding the opportunity costs associated with delays.
- Customer-Centric Approach: The experience of working with offshore teams can sometimes feel impersonal, like booting tasks over the fence. In stark contrast, Arkane Digital prioritizes a partnership where our primary objective is your long-term independence and success post-project. We’re dedicated to a collaborative process, ensuring that when our involvement concludes, you’re equipped and confident to maintain your digital presence on your own.
Create Meaningful, Strategy-Driven Digital Experiences
At Arkane Digital, we partner with you to create meaningful digital experiences based on strategy and experience. Led by a team of industry veterans, we bring years of experience in a technology landscape that is ever changing. Projects never stop at discovery, and we are a full-service digital agency that gets you from start to finish, whether that's launching the redesign of a new website or modernizing your e-commerce system.
Interested? Let’s start a conversation today.