We witness every day that the way of doing business is evolving at the fastest possible pace due to excessive globalization and digitalization. In order to keep pace with the times, we need to revolutionize the way of doing business and its strategies. Because the world is coming closer, everything is getting easier, while remaining competitive with almost low to no more constraints.
One of the most popular terms in the industry that I’m sure you must come across is offshoring. We heard a lot of misconceptions about offshoring such as how it harms the local economy by stealing jobs. Let us delve deeper into the discussion of what it is and other specifics in detail about how it improves your business success ratio.
We can see an undeniable difference while practicing offshoring with our business and even our clients’ success stories. If you’re perplexed about offshoring strategies and decisions, you’ve come to the right place. We will walk you through the following steps in this article. It will include the following:
- What exactly is offshoring?
- Is it the same as outsourcing?
- Is it really hurting the economy?
- How does it help with business success?
- Important points to consider while offshoring services.
What is Offshoring?
Offshoring is the process of seeking assistance from developing countries in order to reduce labor costs and gain access to a global talent pool. In other words, the process of outsourcing non-core business operations to another country. There are multiple reasons that make offshoring a significant key factor in making a business successful.
Is outsourcing synonymous with offshoring?
Both terms are very similar and are sometimes used interchangeably. Outsourcing entails enlisting the help of a third party to perform non-core business functions based on their experience and expertise. Offshoring, on the other hand, refers to the relocation of an entire business process to another country. This can include crucial daily activities such as human resources, administration, data entry, receptionist, accounting, and much more. Offshoring is typically utilized to reduce bottlenecks so that day-to-day operations can run smoothly.
How offshoring is shaping your business’s Success?
Multinationals are ramping up by minimizing corners, which was hard to imagine a few decades previously but is now being implemented by almost every large or small business. We could indeed gain confidence from any inspiring business or can even learn from the failures of large corporations. As there’s no need to reinvent the wheel. There are numerous examples in front of us. WhatsApp, Google, and Amazon are a few examples. Their non-core businesses are all outsourced. Their professionals are solely focused on client-centric stuff and adding innovative features to their platform or product or other growth strategies. Let us be inspired by them and follow in their footsteps to reach the same destination. Aside from that, there are a couple of other reasons why offshoring can help your business succeed.
1- Overseas Expansion:
A business could indeed expand its branches overseas without investing excessive resources. If businesses outsource overseas, any of their business operations can broaden their customer base. Furthermore, overseas teams sometimes have a better understanding of different cultural norms and localities due to their experience with a wide range of clients from different countries with different cultural values. Also, you will also be more relaxed because you will know that someone is working, even if it is in a different timezone, but the risk of unavailability will be reduced. Overseas expansion can also save cost in a way we choose some affordable countries with a considerable currency difference.
2- Accelerate the process:
Important considerations when offshoring services
Before selecting a partner for outsourcing, there are a few things we must keep in mind:
- Choose your offshoring partner wisely; it could be someone with a good reputation in your chosen location.
- Ascertain that your offshoring partner has sufficient resources (PCs, dedicated team, etc.) to begin working on your processes.
- Check for quality assurance measures they have in place. Voice recording samples, service demos, monthly report samples, all indicate a high standard of quality.
- Don’t over invest. Most outsourcing companies provide flexible packages so only purchase enough resources to cover what you need.
Offshoring can be a powerful tool if used properly. Many activities are better if they are carried out in-house. But for everything else, transferring them to a third party helps companies bolster their productivity. Getting started with offshoring begins by first getting in touch with a trusted BPO with vast experience in helping clients find the right solution for their needs.
IdeasUnlimited, with more than 12 years in the industry, has helped over 500 clients from around the world with their offshoring needs. With a wide range of services, the firm offers a diverse array of solutions to help companies push their productivity. Get started today and get in touch with our experts by visiting our contact page.