The Benefits of outsourcing to Canada


No matter what the current joke is, or what political gaff is happening today, we appreciate America! Many of our best and brightest are there now living and thriving and we love that you come up here to see us from time to time. For many American companies, small, medium, or large, globalization and outsourcing have revolutionized the way business gets done. Tried and true companies such as GM and of course digital success stories such as Facebook have capitalized on the many benefits which outsourcing offers. In the 21st century, companies are focused on competing in the global economy and running as lean as possible. Outsourcing allows for lower operational costs, freeing up internal resources and a lower-cost product/service for the consumer. All of this while maintaining healthy profit margins. The defenders of outsourcing point to these as arguments for the value of outsourcing. But there's another side to the story...

While outsourcing does provide these benefits, it comes with some downsides as well.

 

Hidden Factors

The initial cost seems to be amazingly low - with some claiming savings as big as 75% off of hourly rates. However, outsourcing has pitfalls if a company just assumes it's the right move to make

Hidden Factors

The initial cost seems to be amazingly low - with some claiming savings as big as 75% off of hourly rates. However, outsourcing has pitfalls if a company just assumes it's the right move to make

  • Language barriers.
    It is highly likely that workers in the outsourced country will not speak the same language or speak it to the same degree of competency as those in your firm. This can lead to a litany of problems, including miscommunication and improper deliverables, having to hire translators, more back-and-forth on reviews, input, approvals - time which will likely be overrun to the SOW that was signed because it will be seen as change order requirement.

  • Travel costs.
    It may be necessary to travel to the offshore location for training, reviews, or a variety of other reasons. Travels costs can build up very quickly and become a significant expense

  • Poorly spec'd documents.
    When working with Outsource Providers on another continent, who don't understand the broader needs of your firm or the market your company operates within, it becomes necessary to create detailed specification documents which take up tremendous amounts of valuable time. Cutting corners, or worse, assuming that your outsource partner will follow the direction you think makes sense can easily lead to situations where the Outsource team delivers, you're not happy and the process starts all over again adding cost, time, and frustration.

  • Development opportunities lost at home.
    By outsourcing responsibilities such as research and development, firms lose out on the opportunity to develop internal talent. If outsourcing is taken too far, this can cripple the firms future

  • Time zone issues.
    It can be difficult to have tasks done in a timely manner when there is a 12 hour lag between employees and offshore workers performing their tasks. A simple job can end up taking days, and a whole lot of emails, versus minutes or at least only a day to address.

  • Lack of oversight.
    As the outsourced workers are on different continents there is little executive oversight on the (potentially hazardous) decisions that are being made on a daily basis leading to mistakes, or worse new costs to fix problems that could easily have been avoided. While this may seem a small issue, it can quickly snowball into a major one

  • Training costs.
    Outsourced employees have to be trained in the nuances of the jobs they have to perform - and trainers are often senior managers who have to be flown to the offshore location. In addition, there is a natural learning curve that comes from starting in a new role which as to be accounted for
  • Unforeseen risks.
    There are many unforeseen risks which arise from working in an unfamiliar environment. These can range from political issues to shifting local laws.

  • Ethical issues.
    Unfortunately, outsourcing often comes with certain ethical and moral issues. These issues can spell PR nightmare which seriously hurt the bottom line of all involved, not to mention create headaches in relationships that thrive on trust and collaboration.


  • Lack of skill.
    Some outsourcing companies will display their most skilled and educated staff when they are meeting with you, but when you sign the contract they will assign the lowest paid and least skilled workers they have. This can result in work that simply isn’t done right.

With so many hidden factors, why would any company risk the potential for disaster? Cost savings aside, understanding these issues and still capitalizing on the benefits can make it tough for organizations to decide whether to outsource. However, the smartest of companies only need to look north. North allows businesses to retain the benefits of outsourcing while avoiding the downsides.

With so many hidden factors, why would any company risk the potential for disaster? Cost savings aside, understanding these issues and still capitalizing on the benefits can make it tough for organizations to decide whether to outsource. However, the smartest of companies only need to look north. North allows businesses to retain the benefits of outsourcing while avoiding the downsides.

  • No communication issues
    Canadians and Americans speak the same language. Sure we say "Eh" and you laugh at how we say "out" and "about", but that's just semantics. The important point here is that you say it, we get it, and it gets done.

  • We are awake when you are
    Since we're neighbors, we're in your time zone. This means communications can be done in minutes rather than hours, or even days. When you want a chat, you can pick-up the phone or send an email to a project manager and get a response when you need it.

  • No cultural differences/difficulties
    Canada and America share the same North American work ethic. We know you need it done, we know time is money, and we know how it turns out is a direct reflection of your management skills. We're very invested in your success because it means we did our job. Plus, there's very little that needs to be explained to Canadians about how business works in the States, or about the customers or consumers being addressed. In fact, we may even be able to help you make your project better by collaborating on the messaging, look, feel, tone, etc. That's not something that comes from a faraway land.



  • Same quality of education/training
    Canadians are trained to the same degree as their US counterparts and have a nuanced understanding of the sectors they work in. In fact, many Canadian workers have completed their post-secondary education in the US! That training has helped us to build the technology environment we operate within today up here.

  • Travel costs are relatively small
    And travel time is very short. You can get from NYC to Toronto in an hour, or if you want to drive, seven (we recommend Air Canada).

  • The Canadian dollar currently stands at around ~ 75 cents US
    and the average salary is lower in Canada. You get more bang for your buck when you outsource to Canada

  • Similar legal code in the US and Canada.
    You can be assured that your work is being performed is an ethical manner and that we understand the legalities of the US market.

 

 

    • Managed services
      We have an experienced management team, who has worked in a variety of categories. Our leadership is engaged in all that we do. Our senior management is on the ground in the US too (office in NYC). But here's a little secret, we bill that staff at Canadian rates too.

    • Skilled workers
      We only hire the best. At Venuiti we have a hire slow, fire fast policy. The people working here are at the top of their game.

    • Understanding of your industry
      We have worked in virtually every possible industry, from candy to tourism to healthcare. We're in tune with the current trends but always look to be ahead of the next trend. We call ourselves reinventors. We have built a company on anticipating the future of technology and marketing.

    • In fact, while many of our competitors will simply provide what is asked for and move on - we will stop and say something if we see a better way. We don't want to just take your money and move on - we are interested in developing business relationships

    • End to end services
      Many firms only provide a small service and don't understand the bigger picture. We stand in sharp contrast to this, as we provide a full range of services including business consulting, development, testing, analytics and more.

 

 

So reach out to us let's talk about what you need... Eh? Work with Venuiti and improve your bottom line!

 

 

 


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