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2010-01-18

Offshore works - If you do it the right way

Establishment Abroad has met Åke Pihlanen from the company Make-it-in-India. We met up with Åke in order to get tips and advice on Offshore Services. Åke has been working in this field for over 10 years and over the years he has learned the traditional mistakes many companies make.

Åke (the picture) says that when you are about to start
off-shore operations, you should not rush. You must be very careful in choosing partners and do not let price be the only determining factor.

You should take culture and language into account, therefore
, Åke has chosen to work with India since people there have good knowledge in English.

What companies often forget is to do research first before
they start the process. To go through their own activities and the careful preparation of personnel at home is incredibly important. It is therefore important to anchor the offshore project internally before the new services will be mediated on to the final customer.

Åke also recognizes the importance
of documenting procedures and processes and to follow them. All records must have an Internet-based platform that makes documentation available to everyone, regardless of which time zone applies. This facilitates the process enormously and is timesaving.

When our meeting is over, it strikes me how important it is to absorb knowledge and not just rush with the hope of making money. If you do the whole process properly, you will make money but there are a lot of obstacles.

Obstacles
The own staff and offshore company do not have the same
view on which part of the activities should be carried out by which unit. Here, you will have to work out clear and documented limits.

Inadequate language may create false perceptions of what should be implemented and how.

Documentation and contracts have shortages that come up
when the activity is started. To carry out a professional "Due Diligence" on contracts, agreements and service descriptions is often a good investment, before services are delivered to the final customer.

Inadequate purchasing functions may cause trouble when a
product or service does not live up to expectations on delivery and production rates.

Cultural clashes are always present, but still manageable if one
is inclined to changes and understand that there are different ways to implement the same thing.

Finally, to hire an experienced consultant in the field can be a
very good investment. It should be a resource that has experience in both the area and the new country.


                                                                                 Cecilia Helland

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