Firstly, a common mix up made is that outsourcing and offshoring is the same thing. They are actually completely different concepts. Outsourcing is where you outsource internal operations from another business. Whereas, offshoring involves sourcing your products and services from overseas.
Businesses benefit from offshoring as it’s an opportunity to grow through relocating your operations. Read on to discover the many advantages of offshoring.
Cutting Costs, Maintained Quality
The main reason as to why businesses choose to offshore is because it’s a highly cost-efficient option for completing tasks and work. By offshore staffing, you can lower operation costs in anything from infrastructure, equipment, utilities and employee’s salaries. The costs they are saving can then be put towards other means of the business and they can focus it towards growth and quality.
Despite what you may believe, lower costs do not mean lower quality. The quality of an offshore company is if not the same, better, then companies in your home country. It has similar aspects to outsourcing in this sense. You are utilising other people’s skills and resources in a budget-friendly way without risking the outcome.
Added Control
You will have as much control over your offshore company, that you have over your in-house team. You don’t have to give up control and it is not recommended that you do, you never want to risk quality to keep on top of things. You are miles away, but you’re still in charge of training and development, so continue providing direction and management.
By retaining control, you can ensure that the work being produced is aligned and share similarities in the outcome between in-house and offshoring. You may even set the same goals.
Flexibility
As you’ll be working with different time-zones, you can offer your clients and customers 24/7 services and communications. This can improve company reputations alongside building a trusting and loyal relationship with clients.
Developing Economies Overseas
By offshoring overseas, you can add to the economy to help improve living standards and infrastructure. You can create jobs in another country as well as reduce immigration problems because locals will not need to work abroad or move to earn money.
Faster and Better Quality
Offshoring tasks can be completed faster and with better quality overseas. Often, in the countries businesses offshore to, they have amazing skills in technology that they can then benefit from. They have resources that create quality, high-standard end products, as well as their expertise.
Overall, offshoring is a win-win for everyone. On each end, someone is benefiting from the service. Companies who offshore continuously smash business goals and exceed expectations without going over a budget.
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