Digital experiences are now the brand’s face to the customer, if not the product, themselves. Selecting a partner with proven methodologies and industry experience is paramount. Outsourcing firms from places like India, Philippines, Ukraine, and Romania have proven adept at handling back-office functions like accounting and basic IT support, but have run into major issues when it comes to client-facing experiences (think of the backlash against Indian call centers). The same is true when it comes to digital – your outsourcing partner must understand your product, the customer’s journey, Western design aesthetics, UX practices, and internal technology / software development protocols.
The days of “throwing work over the wall” and waiting until the next day for feedback or iteration from partners half way around the world are over. Modern technology and creative development require teams working collaboratively in real time, most often in an agile environment. Outsource partners should ideally be working in the same time zone (or close to it), able to join calls / meetings / scrums on the fly rather than at odd hours, reducing the stress on the internal team to hit deadlines. The ability of resources to work on or off-site is another key to building trust and collaboration among team members, increasing productivity and output. Speed is also impacted by the quality elements noted above – Nearshore Americas estimates the amount of re-work needed to be performed by Indian digital outsource providers approaches 30% more than that of firms based in Latin America.
Demand for digital talent across functions has been driving up the cost of in-house personnel. Freelance resources are often used for one-off, peak efforts – but typically come at a higher hourly cost, with no business insurance, and ongoing management challenges, especially at scale. The reality is that digital decision makers are seeking rates near or below their internal cost. However, finding the lowest cost rate isn’t always better if the tradeoff is quality or speed as noted above. What’s required are digital partners with proven efficiency, industry expertise (to shorten / flatten the learning curve), and flexible team structures of committed resources across technology, creative, and UX. Holding on to this talent is crucial to controlling cost. According to NASCOMM, talent churn rates in India are 35% compared to LatAm’s 8%-15%. When risk and cost of continuous knowledge transfer and re-training staff is baked into your TCO (Total Cost of Ownership), the savings of outsourcing to Latin America are even more evident.
Zemoga is the pioneer in the nearshore digital outsourcing model, with over 16 years of experience providing high quality teams and services to over 50 of the Fortune 500. Our deep expertise across industries, from retail and financial services to healthcare and entertainment, allows us to ramp up quickly, support flawlessly, and drive both efficiency and effectiveness in digital budgets. Please reach out today if you’d like to find out more about how we recently helped drive savings of over 30% in the digital budget of a leading financial brand.