Offshoring is a great option to find your perfect remote worker. First of all, we need to remember that offshoring is the process of outsourcing work to a third country and it has more benefits that you may have thought of.
Offshoring is a type of outsourcing. There are principally 2 types of offshoring: production offshoring and services offshoring.
a) Production Offshoring
Involves the relocation of physical manufacturing processes abroad, usually to a destination with lower production costs or fewer regulatory restrictions. In other words, it occurs when a company establishes a manufacturing unit in a different country, and imports the finished products for sale in the domestic market (e.g. like Apple outsources the manufacturing of its iPhone to a Chinese manufacturer).
As another example, a company that manufactures heavy machinery may set up its production unit in another country where an optimal supply is available and the local labor force is skilled for the task while commanding lower compensation.
b) Services offshoring
Is when a company sets up business units in another country to carry out service-related operations, such as customer care, IT, marketing, HR, accounting and sales, and more. In addition to lower costs, the offshoring of services also opens the door to larger pools of talent.
For example, a company may want to have a remote team because they know that in a certain country there are better personnel to do a specific task.
We note that both types of offshoring are good options and that nowadays services offshoring is widely used by companies that are looking for a much broader workforce. Here is a comparative chart about both types of offshoring.
At Backoffice Abroad we are dedicated to offer services offshoring with all the benefits it offers, and more! Let us know how we can help you.
