Offshore outsourcing, quite simply means outsourcing a certain business process/-es to a trusted partner working out of a foreign country. It can be an individual or another company, that offers specialised services ranging generally from H.R to Accounting, not to mention some companies who take on an organisations core production or even development process. Offshore outsourcing, like outsourcing or any other business practice, has number of pros;
- Offers significant cost benefits and savings
- Let’s you focus more on the core business
- Payroll and other employee related functions are taken care of by offshoring company
- Skilled personnel can be hired without going through tedious recruitment process
- Helps facilitate expansion and scaling up of business
While there may exist cons to hiring an offshore service provider (as does exist for many practices), these have now been mitigated as a result of advancements in technology and corrective actions undertaken by offshore outsourcing companies.
- The perceived lack of control or supervision is not a concern any more as video and telecommunication technology allows people to communicate over different time zones, through just a single click or tap.
- Offshore outsourced personnel also work according to the client’s working hours so that any delay in getting work done is eliminated.
- In order to effectively overcome culture barriers, personnel in offshore outsourcing companies are trained in the ways of the client, how they communicate, the kind of results they expect and the general work culture to be expected, so that their output is not affected in any way.
Thus, it can be said that offshore outsourcing offers an exciting proposition for companies that want to improve existing capabilities or scale up their business operations, in a cost efficient and effective manner. The decision to outsource offshore needs to be taken based on the individual factors affecting the company. However, if done well, offshore outsourcing can be your tool to see your organisation reach new heights.