Why Offshore Staffing is a Good Strategy for Your Business?

Introduction

Staying relevant in this highly competitive and interconnected world is probably something that is on the minds of both small and large businesses. The effort, time, and capital that gets invested into creating innovative solutions and offerings to stay ahead of the curve can be quite huge. A major determinant behind the scaling strategy of every company is certainly having the resources with the right skills. An in-house team could inevitably increase the costs in the long run and this is when offshore staffing proves to be the most viable option to ramp up productivity.

The outsourcing and shared services sector is all set to reach US$ 971.2 billion by 2023 according to the 2019 Deloitte Report and it is evident that most companies have already begun thinking along the lines of offshore staffing. Several business processes such as call center services, transaction processing, transcription services, marketing, software development, and creative designing can be handled with offshore staffing. 

With offshore staffing, you can scale up your business based on your requirements, budgets, or functionalities without impacting the bottom line. When companies toy with the idea of considering offshore staffing for their business processes, it is only understandable to initially be alarmed by all the costs it could incur. But once you look at it closely enough, offshore staffing can bring numerous sustainable benefits to your organization. Here are the top reasons why offshore staffing can be a lucrative business decision for your company; 

1. Save up more on operational costs

Every project or upgrade that your business takes up will have to be done strategically and efficiently so that these don’t end up being expensive liabilities. Your calculated profit margin must be at par with the revenue growth trajectory that is expected. When everything that your business does comes down to this, the best way forward is no doubt cutting whatever costs you can. Offshoring or outsourcing some of your services or functionalities can easily translate to more cost savings when you get into it with proper planning and research. Ensure that your cost-reduction strategies are well aligned with the operational and technical aspects of your business. Partner with the right outsourcing and offshoring services to maximize the cost benefits. It is given that the operational costs of offshore labor will prove to be much lower be it about equipment, utilities, infrastructures, or employee salaries. Studies have shown at least a 30% reduction in the company’s overall costs when an offshore team is involved. This means more money to spend on other critical business investments or expenses. Get more for less with offshore staffing. Offshore teams come with their own pre-existing offices and trained employees so you get more skilled professionals and back-end support for less.

2. Engaging with new talent pools

For companies that find it difficult to attract and retain top talent locally, offshore staffing gives you direct access to engage with the huge and highly skilled talent pool out there. An expanded talent pool, high-level expertise at lower costs, a dedicated team to manage services, and swift turnaround times on projects could be some of the benefits of offshore staffing. 

Especially for small organizations that may not have the resources to hire an in-house tech or domain expert, they can leverage the massive pool of tech specialists at affordable rates by outsourcing tech functions. Talent pools could also help you maintain a constant flow of candidates to meet the future demands of your business.

3. Get that unique competitive edge

When you team up with people from around the world, think of all the fresh perspectives and ideas that you can automatically garner for solving your business problems. With offshoring, you have access to a large pool of highly educated and skilled resources and this can give your company a global competitive edge. Agility and being nimble when it comes to making business decisions will mean that your customers are always kept happy and promptly served. Offshore staffing can help you with this.

4. Improved access to limitless resources

All the extra costs involved in recruiting and training resources for your business can be effortlessly taken care of when you decide to go with offshore staffing. The offshore teams will have the skilled resources that are adept at handling the processes required by your business. People with certain specialized skill sets could be quite hard to find in your location and offshoring gives you access to such employees. Not just people, even other resources like technology or supplies that are difficult to source locally could be easily available elsewhere. So, offshoring will mean better access to all such resources required for the success of your business.

5. Get the threat of possible risks easily distributed

In the normal scenario, the offshore team is often responsible for non-strategic departments whereas the primary company will have full control over the strategic segments. When the duties get split like this, the associated risks can also be evenly distributed. When the entire supply chain remains a centralized one, even the slightest of problems or risks could affect the overall functioning of the business. Roping in an offshore team and splitting the duties will enable any shortcomings to be quickly isolated and managed without the whole ship going underwater. In some cases, there could be local unrest, Government restrictions, or even unstable weather affecting the business functioning in your area. Having an offshore team could help mitigate such business risks to some extent.

6. Enhanced focus for complex tasks at hand

They say time is money and in the business sense this is true only if you can increase your in-house team’s engagement at work. When you make it possible for them to have the extra time to focus on more complex tasks and projects without being riddled with mundane business tasks, the team is poised for greater things. The usual time-consuming administrative tasks such as payroll accounting, record keeping, and business processes such as management and recruitment could all be efficiently handled by an offshore team. It is a practical solution to outsource the non-strategic responsibilities to teams that are specialized in doing those. The primary product or service that your company offers is where all your focus should be. Improving the company’s reputation and increasing profitability will invariably depend on everything that you do to strengthen this focus. By hiring an offshore team, the top-level management can focus their energies on ensuring that the goals of the company are developed enough to complement the key product or service. They can devote their attention and bandwidth to even repositioning services and products to stay relevant in the competitive landscape. The top people in your company can help increase the market share by leveraging their core competencies.

7. Push the envelope with offshore staffing

When it comes to pushing the envelope on cost efficiencies and productivity, a strategic combination of home-grown talent and an offshore team will surely help companies to scale newer heights. Both big and small companies from diverse backgrounds can reap huge benefits from offshore staffing. Important capabilities key to the success of a business, like domain expertise, manpower, process discipline, and the latest technology can take a great deal of time to bring in or build from scratch. It is crucial for the decision-makers in your company to carefully decide which business processes would be best served by offshoring to both maximize value and serve your customers better. By partnering with an experienced offshore staffing company with an excellent track record, your business stands to achieve the best results.