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Pros and Cons of Offshore Outsourcing, and How They Affect Your Business

Pros and Cons of Offshore Outsourcing, and How They Affect Your Business

Will offshore outsourcing work for your business model?

As businesses evolve with the dynamics of operations, offshore outsourcing becomes a reliable and profitable solution that organizations look into as one of their competitive strategies. While offshoring offers a strategic business approach, it still has shortcomings. Will the pros outweigh the cons? 

The Pros of Offshore Outsourcing

Outsourcing talents to a professional offshore service provider brings numerous benefits. You may want to look into offshore outsourcing if your organization needs: 

Cost-Effective Employment Solutions

Startups struggling to penetrate the market would often compromise when it comes to their employees. Outsourcing removes the burden of shouldering the costs of talent acquisition, onboarding, and managing their employees. As such, there is no need to spend on additional resources, tools, technologies, and infrastructure necessary to manage talents.

Offshore outsourcing can effectively slash your operational and maintenance costs by as much as 40-60%. How? Geographic differences equate to a massive salary gap. Suppose you need to hire a web developer. A U.S.-based dev will cost you an average of US$55,421 per year. Whereas hiring a Philippines-based senior-level web developer will require you to pay only US$23,719.44 annually. 

Access to Systematic and Proficient Pool of Talents

Once your company is working with an offshore service provider with established talent management strategies, you will get access to high-quality output, increased productivity, and a noticeable return on investment. Offshore outsourcing means that a team with technical expertise in handling verticals can assure conversions, thereby improving your bottom line. 

Fast Turnaround Times

When you are pressed for time and need competent and reliable talent, the hiring process can disrupt operations. Most offshore outsourcing companies have fast turnaround times in their recruitment process that helps companies, particularly startups, expand their team while continuing normal operations. Take the case of Mosh, an online clinic based in Australia. The company needed to expand its team to cater to a growing customer base. Unfortunately, they did not have the time to spend on talent recruitment and onboarding. 

MultiplyMii addressed this pain point by providing a bespoke onboarding process, which improved process flow and enhanced the quality of Mosh’s customer support capabilities. 

Increased Reliability 

Offshore outsourcing solutions like MultiplyMii are committed to providing their clients with reliable results. By employing a full-time employee who can work as a valuable part of the company, it is easy to see results that matter. While a company can go for a freelancer, there is always the question of reliability when it comes to their deliverables. Clients would often be left wanting, and this can hurt productivity badly. Full Time employees, albeit working remotely, can have a fixed schedule to allow everyone in the team to communicate effectively.

The Cons of Offshore Outsourcing

Language and Cultural Barriers

Organizations often have to deal with language barriers and cultural differences, which can impact business operations. It is a hurdle that most startups have to deal with. However, these issues can be quickly resolved when your offshore outsourcing provider recruits staff from a country like the Philippines, where many individuals can speak and understand English. Since the country was a former American territory, cultural differences are very minor and often unnoticeable.

Full Timezone Coverage

When you outsource your employees from a different country, this may mean that you have to deal with different timezones. In the Philippines, however, the prevalence of business process outsourcing companies allowed employees to work on a graveyard shift, allowing them to work with your timezone. If needed, multiple shifts can cover different timezones.

Security Issues

Perhaps one of the greatest challenges that businesses face when they outsource is security. Despite the presence of various Data Protection Act, security breach and data integrity remain an issue, mainly heightened in the absence of close collaboration with employees. That’s why this is where global communication comes in. Once you know how to communicate with your team, no matter where they are, it would be easier to address security issues. 

While offshore outsourcing has notable shortcomings, the benefits clearly outweigh them. There is always a workaround, mainly if you work with a reliable offshore employment service provider like MultiplyMii, which handles end-to-end HR outsourcing management from outsourcing to onboarding. Book a Demo with us and learn how we can help you run your business with more efficiency.

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