Do you own a construction and architecture business? You must have been burdened with massive work. What If you get someone to accomplish your tasks timely at a lesser cost? Isn’t it a great deal? You must be curious to know who will do it for you. Let me clear your uncertainty!
Multiple offshoring companies are providing different services over the borders to unburden you. You can easily get various tasks done from them with less labour cost. In the ever-growing construction industry, offshoring is a transformative force, reshaping the foundations of how projects are conceived, developed, and executed.
What role can be played by offshoring in Construction?
The construction industry is associated with certain other operations that can be done from anywhere globally, including designing, project management, budgeting, procurement and supply chain management, virtual assistance, administrative support, labour hiring and management, IT Support, documentation, legal and financial services.
It’s a strategic way of transcending borders to merge diverse talents and specialised skills from various corners of the world into a harmonious innovation.
Why offshoring is a golden saving ticket for you?
Construction is a complex process and demands many operations that are difficult to handle by a single organisation. Handing over some of your tasks to service providers in different countries, offering comparatively lower labour costs, saves your massive investments. Following are how offshoring is superior to self-done work.
Cost Efficiency and Financial Impact:
Many developing countries, including the Philippines, India, Pakistan, etc., provide different services at cheaper labour costs. What else would you demand if you get your operational tasks efficiently done at low prices? For instance, you run a construction business in the United States. You must spend US Dollars on operations like customer services, labour hiring, managing working schedules, documentation, etc. Offshoring such services to providers across the border can save you huge money.
Technology and Innovation Exchange:
Technical architecture has evolved the traditional construction and mapping pattern. Technological assistance, i.e., Building Information Modeling, Prefabrication, Modular construction, Green building technology, Robotics, real-time monitoring systems, data analytics tools, virtual project management systems, etc, can be gained from service providers experts in the specific operations comparatively at a lesser cost.
Skilled Labour and Expertise:
Companies providing specific services have skilled and expert labour in those particular services. Getting those tasks done by such a service provider is better than doing them yourself. Additionally, it’s the best decision to have such services from countries with labour costs lesser than those in your country. So, offshoring benefits you in accomplishing your goals with the least investment.
Increased Productivity and Efficiency:
Offshoring involves utilising advanced technologies and more efficient processes available in the offshoring destination. This can boost productivity and streamline your construction workflows. It offers flexibility in scaling operations up or down according to project requirements. This adaptability can be beneficial in handling fluctuating workloads or sudden project demands. Ultimately, the efficiency of your construction business is increased.
Focus on Core Competencies:
Offshoring the non-core operations like project management, procurement, supply chain management, labour working schedule, virtual construction support, modular mapping, It and software support, Bookkeeping and HR functions, etc, can be performed by offshoring service providers. This lowers your burden and helps you perform your primary construction operations effectively.
Continuous Workflow:
Handling your tasks to companies located in other countries with different time zones keeps your operations in continuity. Collaborating with offshore service providers is a big opportunity to keep your work functional even when you’re sleeping and at the least cost. What else do you want more?
Successful Real-time Case-Studies:
Many companies offshore their operations to others, and this working pattering is becoming famous in the construction industry. Let’s discuss some of the real-time construction companies that offshore their operations.
Skanska:
This global construction company has utilised offshoring for various functions, including design, engineering, and project management. They’ve often partnered with offshore firms to access specialised skills and cost-effective labour, optimising their project execution and enhancing overall efficiency.
AECOM:
AECOM, a multinational engineering firm, has employed offshoring for architectural design, drafting, and 3D modeling tasks. They’ve successfully utilised offshored services to streamline project workflows, improve collaboration, and reduce operational costs.
Bechtel:
Bechtel, a prominent construction and engineering company, has engaged in offshoring for engineering and procurement services. Collaborating with offshore teams, they’ve increased their flexibility, expanded their talent pool, and expedited project timelines.
Turner Construction:
Turner Construction, known for its global projects, has explored offshoring for various back-office functions, including accounting, HR, and administrative tasks. This approach has allowed them to focus on core competencies while reducing operational expenses through cost-effective offshored services.
Does offshoring bring challenges with benefits?
Everything exists by balancing pros and cons, and so does offshoring. Getting your tasks done by people from different countries can bring challenges and benefits. Following are the risks linked with offshoring work patterns.
Communication and Language Barriers:
Offshoring involves working with teams from different cultural backgrounds, leading to potential communication barriers and misunderstandings. Language differences can hinder effective collaboration and result in misinterpretation of instructions.
Quality Control and Standards Compliance:
Maintaining consistent quality standards across borders can be challenging. Different countries may have varying regulations, building codes, or quality expectations, leading to discrepancies in the quality of work.
Time Zone Differences and Coordination:
Working across different time zones can affect real-time collaboration and decision-making. Scheduling meetings, resolving issues promptly, and ensuring continuous workflow can be challenging when teams are in different time zones.
Intellectual Property and Data Security:
Offshoring may involve sharing sensitive information and intellectual property. Ensuring data security, protecting proprietary information, and preventing intellectual property theft are crucial concerns when working with offshore teams.
Different Work Practices:
Varied work cultures and practices can impact project management styles, work ethics, and expectations. Differences in approaches to problem-solving or decision-making may lead to conflicts or inefficiencies if not managed effectively.
Political and Geopolitical Risks:
Offshoring operations to certain regions may expose companies to geopolitical risks, including political instability, changes in government policies, or regional conflicts that could disrupt operations or escalate costs unexpectedly.
Dependency and Vendor Reliability:
Depending heavily on offshore vendors or contractors can create dependency issues. Reliability concerns regarding performance, financial stability, or sudden changes in offshore partners can affect project continuity.
Infrastructure and Technology Challenges:
Offshoring to regions with inadequate infrastructure or technological capabilities may hinder efficient operations. Limited access to reliable internet, outdated technology, or insufficient resources can impact project timelines and quality.
Regulatory Compliance and Legal Risks:
Adhering to different legal and regulatory frameworks across borders poses challenges. Meeting compliance requirements, understanding local laws, and navigating diverse legal environments can be complex and time-consuming.
By efficiently managing the risks, offshoring can be a global exchange of knowledge, expertise, technologies, ideas, and practices that benefit the construction industry. This transfer of tasks has contributed to enhanced efficiency, improved safety standards, sustainable practices, and overall advancements in construction companies on a global scale.
