Why Building Your Own Offshore Delivery Centre Is Costlier Than Partnering With One

In today's fast paced global economy, Offshore Delivery Centres (ODCs) are now becoming a very popular strategy which is being implemented by businesses across the world often because of its perks in terms of reducing costs, accessing specialized talent and fast scaling operations. 

Many companies are now building their own offshore delivery centres as a way to maximize savings and minimize costs. However, this approach is often far more expensive and complex in nature which is beyond simple partnering with an experienced offshore provider.

At CA Khan LLC, we have guided a number of clients through the decision-making process and found that partnering with an established offshore delivery center mainly offers significant financial and operational benefits. 

Here’s why building your own offshore delivery center is usually much costlier than partnering with one:

1. High Initial Investment and Setup Costs

Building an offshore delivery center from scratch requires substantial investment spending including other aspects such as-

• Leasing office spaces in a foreign market which involves long term commitments

• Procuring IT hardware and software licenses and setting up encrypted network infrastructure.

• Establishing HR, payroll, and compliance systems that meet local regulations.

These setups often drain millions of dollars before any initial work begins.

By partnering with an established offshore provider like CA Khan LLC, you gain instant access to fully operational delivery centers without incurring these initial costs and expenses.

2. Challenges related to talent acquisition and retention

Hiring and retaining skilled offshore talent is a very complex and resource-intensive challenge. One must understand the following points in order to begin:

• You must understand local job market and salary expectations

• Recruitment involves navigating through cultural differences and labour laws.

• Employee retention is very tough in markets where attrition rates are high.

• Building an employer brand offshore requires more effort in terms of time and investment.

When you partner with a trusted offshore provider, you may leverage their existing pools of talent, strategies and other business processes. This ensures that you get access to skilled and professional employees quickly without hiring hurdles.

3. Navigating Complex Legal & Regulatory Landscapes

Every offshore location comes with different and unique legal compliance requirements, such as:

• Labour laws & employee rights

• Tax regulations and societal contributions

• Data privacy and security standards

• Industrial compliance

Failing to comply with these regulations can result in legal fines, and operational disruptions

Established Offshore partners already have legal compliance built and tested. This reduces your risk and removes the need to hire local expensive legal advisors and other consultants.

4. Time-to-Value: A means for Faster ROI and Business Agility 

Setting up your own offshore delivery centre is a lengthy process which typically takes more than a year. During this time, firms may incur ongoing costs without any visible returns.

In contrast, partnering with offshore provider means:

• Rapid onboarding of teams within a few weeks or months.

• Immediate access to infrastructure and other resources

• Faster project ramp and delivery timelines.

5. Hidden Operational Costs and Management Overheads

Operating and offshore delivery centre involves continuous expenses and management challenges:

• Training and developing offshore staff

• Providing benefits and complying with laws 

• Managing day-to-day operations and coordinating business activities

• Travelling and communication costs.

By outsourcing to an offshore partner, you get a chance to skip these operational responsibilities which helps in reducing administrative overheads and lets you focus on improvement on core business operations.

6. Focus on Core Competencies

Building and managing an offshore delivery centre requires dedicated attention from leaders and operational teams. This often diverts focus from your company's business goals to innovate something new, or improve customer experience and level-up your strategies.

Partnering with an offshore delivery partner allows you to concentrate on what you do best while your offshore partner handles operations efficiently.

Partner with us now!! Why because - 

At CA Khan LLC, we are specialized in delivering personalized offshore solutions that provide maximum value without any compromises and pitfalls of building your own center.

Here’s what we offer:

• Customized, managed offshore teams aligned with your business goals and needs

• Transparent pricing models without any hidden charges

• Proven governance and quality frameworks for consistent delivery

• Local & offshore presence for smooth communication and collab

• Scalable Solutions that lets your business gradually grow.

Final Thoughts

Building your own offshore business center may seem attractive initially but the reality is that it often leads to higher costs and greater risk in the long run. 

Partnering with an offshore service provider like CA Khan LLC, helps in avoiding these pitfalls which in turn helps you in delivering faster at predictable costs and gives you peace of mind.

So, are you ready to scale your offshore delivery in a smart way?

Let’s Connect!! 

Mail us today at info@cakhan.com and visit our website www.cakhan.com to explore how we can support your business growth with expert offshore partnerships.