Benefits of Offshoring

Today, offshoring is a great option to find staff due to the wide availability of the Internet and the advancement of communication technology. 

But what is offshoring? Offshoring is the process of having work performed in a country different than the country where a company operates. It has more advantages than you can imagine.

Offshoring is used to access a more affordable labor market, but it can also be used to access a skilled workforce in high demand or establish a business presence in a foreign country. 

Based on current statistics, we can clearly see that a large number of companies are turning to offshore outsourcing. 

Outsourcing, on the other hand, may or may not involve an offshore location. It simply involves contracting work to an external organization, whether foreign or domestic. Let’s dig deeper into the benefits of outsourcing.

1. LOWER LABOR COSTS

Savings can be made on employee compensation and other labor-related costs, as the cost of living in the countries where offshoring takes place is often much lower than in developed countries.

In addition to lower labor costs, offshoring can also minimize or even eliminate the cost of hiring, because offshoring agencies will handle the sourcing of the candidates for your open positions.

Offshoring will reduce the need for internal staffing resources, so you will need less office space and save more on real estate expenses. 

2.  MULTICULTURAL ENVIRONMENT

Having multiple teams in different countries helps you create a multicultural environment that allows you to better adapt to a global business environment, gives you a great marketing opportunity and allows you to support your customers where and when they need it.

It is true that, by being in different time zones, your team faces the difficult challenge of coming together – that is where outsourcing to South America is a huge advantage. South America shares most of its time zones with the United States, and allows you to work in real-time with your remote team. 

3. BUSINESS GROWTH

As mentioned above, offshoring allows you to minimize one of the highest expenses of your business: labor costs. 

Being able to have a more flexible budget opens the door to a better planning of your finances. This advantage allows you to have more choices as to where to spend your hard-earned money, opening the opportunity to invest in other areas and grow more. 

You can scale your offshore business faster than with an in-house team, leaving you free to focus on the primary business initiatives that drive growth. 

4. ACCESS NEW MARKETS

When you have an offshore company in another country, your international workforce can help you explore new markets in different locations.

An offshore worker can offer a better understanding of international markets, regional trends and business risks that you may not be aware of. They can help you identify profitable offshore destinations where you can conduct your business.

5. BETTER CONTROL

Offshoring allows you to have dedicated staff working exclusively for your company. You have the opportunity to train the worker as you would any domestic worker. The world of offshoring has broken down most of the communication barriers that existed before. T

Offshoring allows you to give instructions, train your staff and carry out everything else as you wish. The main control of the daily tasks remains yours, while your offshoring partner executes it at your will. 

6.  ACCESS TO SKILLED LABOR 

Outsourcing gives you access to young and vast pools of talent that may not be available (or affordable) in your domestic market. In particular, it gives you access to English-fluent foreign countries, which have highly skilled populations that are university educated. 

With the current pressure in developed countries to find employees with the right skillset, implementing offshore teams will complement your existing staff and allow you to overcome the labor shortage.

When it comes to looking for specific requirements, it is difficult when you are restricted to just one country. Some countries have a much larger labor pool that is not being fully utilized and that is ready to be tapped into. 

Offshoring offers several advantages that can boost business growth.  It allows you to easily grow your business and gives you access to skilled labor at a lower cost. By taking advantage of all the benefits of offshoring, you can effectively build a successful and profitable business.

Offshoring has always been a profitable endeavor for companies. At Backoffice Abroad we offer you the best offshoring solution to grow your business at the lowest cost. Just give us a call!