Moving Your Operations Abroad: A Few Things to “Map” Out
Many organizations are transferring their business efforts further afield. There are many reasons why companies would want to use another country as either a base of operations or as a means to outsource. However, there are a wide variety of considerations that you've got to nail down to make sure that you are not just saving your finances, but are also ensuring you showcase the company in the right light on the world stage. What are some of the things you've got to consider before you start transferring ownership or resources away from your home base?
Should You Nearshore or Offshore Your Operations?
There are subtle differences between the two. Nearshoring is when you outsource to countries that are in close proximity. Naturally, there are a number of benefits to doing this, specifically when it comes to nearshore software development and any role that requires instant communication. When you offshore, you are outsourcing to countries far away.
In theory, we would all be nearshoring our operations, however, it doesn't always benefit us to do this, especially when it comes to our budget. You have got to ask yourself if your operation can benefit from a longer turnaround, which means that offshoring might be a better option.
The Right Location
If you are looking at relocating an aspect of the business, you've got to conduct your due diligence. Market research is critical here, especially if the country does not demand your product, because after all, why would you move to a location if there is limited demand?
When you identify the right location, you've also got to consider the cultural components, such as the language but also the traditions that can make for significant obstacles. For example, if you are considering moving operations to a location where they observe Ramadan, this country is effectively going to shut down for over a month. Can you afford to do this?
In addition, are you going to operate in a place close to transport links like a capital city or would you be operating in a port or a residential area? These things will have a significant bearing on the efficacy of the operation.
The Legalities
The legalities of moving to another location are just as critical because you may not be able to move your operation to specific countries. Many British organizations have found there to be a myriad of red tape in setting up operations within the EU because Britain left the EU. Naturally, this will have an impact on the overall business budget.
Additionally, if you are moving with your loved ones there would be immigration laws to adhere to. Being sure you've gone through the processes to live and work in this country is critical. In addition to all of this, you have to understand what it takes to grow your brand and do it effectively.
Transferring your business to another country can be a big payoff, but there are many people who have purely looked at it from the perspective of saving money. This doesn't always work in their favor.
