My three decades of experience in software development and managing software teams served as the primary motivation behind creating Happening Intelligence and contributing to the success it delivers to software teams. Throughout this period, I have worked collaboratively with diverse software teams located both onshore and offshore.
Is Offshoring Tech Jobs Beneficial or Detrimental?
The answer is not straightforward. While offshoring offers certain advantages, it also presents significant challenges. Key concerns include cultural fit, communication barriers, and time zone differences, all of which can complicate collaboration. Additionally, offshoring often involves remote work, which can lead to issues with visibility and communication compared to on-site employees.
Communication barriers often arise from inadequate vetting processes. Verbal Reasoning assessments are often excluded from vetting processes. Lack of such assessments also makes it harder to allocate appropriate training roadmap to team members. Additionally, cultural fit can be significantly improved through targeted training. For instance, offering micro-learning modules. Short, focused online courses designed to familiarise candidates with organisational values and workplace expectations, that can be made a prerequisite for a position, allowing candidates to better prepare for their roles.
Interestingly, time zone differences can also be advantageous when projects are well-planned and organised. For example, web or mobile applications that operate continuously may benefit from continuous support around the clock. This can be facilitated by combining onshore and offshore teams, though effective management is necessary to avoid quality and productivity setbacks.
Therefore, it is safe to conclude that for projects lacking proper planning and effective tools for vetting, training, and monitoring tech workers, offshoring can indeed be a poor choice. Conversely, projects that are well-structured and managed by individuals familiar with offshoring can experience significant benefits.
What Impact Does Offshoring Have on Local Job Markets?
In recent years, there has been increasing concern about tech jobs being lost to offshoring by large corporations in developed countries. While this is not a new phenomenon (many roles, such as those in call centres and virtual assistance, have been offshored for quite some time) there is now a wealth of experience in managing these types of positions. Additionally, some major corporations have returned to staffing locally after struggling to manage offshore teams or facing political and legal challenges.
At first glance, it may seem obvious that offshoring creates competition for local job seekers, thereby harming the job market. However, the reality is more complex, particularly in the tech sector. The development of new technologies necessitates significant investment, which does not always guarantee success. Entrepreneurs often face a gamble when investing in technology projects, and if hiring local tech workers becomes prohibitively expensive, it can lead to a halt in project development and job creation. Conversely, if offshoring allows for more affordable project creation, local workers can benefit by managing these projects and securing employment. Thus, the relationship between offshoring and local job markets is far from straightforward.
I have personally worked with managers who resisted offshoring, those who attempted it and regretted their decision, and others who successfully implemented offshoring strategies. Let's delve into some of my experience on offshoring.
Why Does Offshoring Fail?
Low Visibility.
A notable difference between in-office staff and those located in another country is the level of access and insight into their daily work activities. Limited visibility can contribute to challenges faced by offshore teams.
Offshore teams may experience difficulties due to insufficient managerial insight. When managers depend on direct supervision or frequent in-person interactions, issues may arise if these methods are unavailable. To support offshore technology teams effectively, it is important to implement tools that offer data to help assess both the quality and quantity of work, enabling timely training and improvement where needed.
The Solution: Strategies for Improvement
1. Tools
A range of tools are available to enhance the security and productivity of remote or offshore teams. These include Mobile Device Management (MDM), Security Information and Event Management (SIEM), Security Orchestration, Automation and Response (SOAR), Unified Endpoint Management (UEM), and various Time Tracking Software solutions that gather comprehensive data on employee activities.
However, no single tool provides complete coverage, often necessitating the deployment of multiple solutions. This approach increases both licensing and administrative overhead. Additionally, these tools can be perceived as restrictive and intrusive, which may lead to reluctance among technology professionals to utilise work devices equipped with such software.
2. Train Managers for Offshore Settings
Offshoring is most effective when managers plan proactively and keep a healthy work backlog. This reduces urgent late-night queries from offshore workers about unclear tasks. When recruiting managers, verify that they possess experience working with offshore teams or receive appropriate training in offshore team management. Additionally, confirm their ability to effectively maintain a well-organised backlog.
One of the main challenges arises when current managers express concerns about offshoring, yet the decision is made to proceed to remain competitive. In such cases, managers may be unwilling to address the offshore team’s inquiries outside regular hours and unable to create a work pipeline that aligns effectively with the offshore team. This leads to lower productivity and greater security risks. The situation is comparable to a knowledge worker producing output without proper guidance or supervision, which in my experience often results in diminished integrity of the final product. The resulting work may fail to meet expected quality standards, carry higher technical debt, and accumulate unresolved issues that make future modifications more difficult. Flaws may also emerge in the application that attackers can exploit, for example overlooked security practices leading to vulnerabilities that hackers target.
3. Enhanced Hiring and Development
Having the right team members is critical to achieving success. Selecting qualified offshore tech workers requires specific expertise beyond simply assessing communication skills; it is also important to confirm that candidates possess an appropriate work environment. If the hiring process overlooks factors like reliable internet, a dedicated work device, or other key aspects of the work environment, you may hire a good employee but face reduced productivity and security due to poor working conditions.
It is also important that the process does not end at hiring. Continuous support, development, and training are essential to build a reliable offshore team that can be depended upon.
Often, the screening process appears effective but misses the mark. This results in hiring knowledge workers with unsuitable skills and attitudes, and without ongoing training and development, the situation only worsens.
4. Equipment
Data security remains a primary concern for organisational leaders. Recently, several prominent companies, such as Optus and Qantas, have encountered security breaches resulting in substantial consequences. In numerous instances, these incidents were attributed to compromised employee devices.
Managing work devices is a major challenge for employers with offshore teams. BYOD (Bring Your Own Device) setups pose compliance, security, and productivity risks, since personal devices may be unsuitable for work, shared with others, or infected with malware. Corporate laptops, while more secure, have high administration and physical handling costs and often discourage use if they are overly restricted.
Even when work machines are initially configured with robust security measures, their security settings may become outdated or less effective over time. Managers often have limited visibility into these changes, and maintaining the up-to-date configuration of every employee's workstation can be costly, which leads many organisations to overlook this critical task.
Summary
In conclusion, the central challenge facing organisations is the lack of visibility and the escalating cost associated with providing secure, suitable work environment and ongoing training and development for offshore tech workers. This not only undermines the security and productivity of remote teams but also places a significant administrative burden on managers. Currently, there is no straightforward, scalable solution that empowers managers to establish a secure and productive work environment for remote tech talent both efficiently and affordably. As a result, many organisations are left grappling with increased risks and operational hurdles, underscoring the urgent need for innovative approaches to remote workforce management.
