What Are Offshore Teams and 11 Ways To Manage Them
According to the Data Bridge Market Research, business process outsourcing (BPO) will grow at an annual 8.1% from 2023 to 2030. The BPO industry is booming - and given its incredible business benefits, it’s easy to see why.
Offshoring can drive down costs, give you access to a bigger talent pool, and free you up to focus on your core business. It’s also becoming easier and easier as the world becomes increasingly digitalized post-pandemic.
In this article, you’ll learn all about offshore teams, their benefits, and the challenges involved. You’ll also get 11 ways to manage them effectively.
We’ll start with…
What are Offshore Teams?
Offshore teams are groups of professionals working for your business remotely, from other countries. They work together with your local hires to support your business’s goals and projects. You can find them in various industries, like IT, customer service, software development, manufacturing, etc.
Today, offshore teams are becoming popular thanks to technology and connectivity. Seamless collaboration regardless of distance is easy - so offshoring is becoming more popular.
Picture this: talented individuals across different continents working together as if in the same office. They communicate through video conferences, instant messaging, and project management tools. They break down the barriers of distance and time zones.
This modern way of working allows you to tap into a global talent pool. Offshore staffing brings together diverse perspectives and expertise, which is invaluable in solving problems.
For instance, with the help of an offshore staffing firm like MultiplyMii, a Western web development company can find highly-qualified developers in the Philippines.
While the sun sets in one part of the world, it rises in the other, ensuring round-the-clock operations. The continuous workflow boosts productivity and speeds up project completion.
Offshore teams allow you to take advantage of the 24-hour work cycle. It ensures progress even when the main office is closed for the day.
The rise of offshore teams in business
In recent years, companies have hired offshore teams for numerous reasons, and it’s not slowing down anytime soon.
Cost savings play a significant role in the rise of offshore teams. A worldwide survey of business leaders showed 59% cited cutting costs as the most important reason for outsourcing.
Outsourcing tasks to professionals in countries with lower labor costs reduces operational expenses. You can allot your cost savings to other areas of growth and innovation.
Access to a global talent pool is another driving factor behind the popularity of offshore teams. You can find experts to help you stay ahead in a rapidly evolving marketplace.
Benefits of offshore teams
There are many benefits that you can gain from employing offshore teams:
- Cost savings
Offshore teams are a cost-effective solution. They often have lower labor and operational costs. So, instead of growing overhead costs, you can use the money saved to invest in other parts of your business. You can redistribute the budget to research, marketing, or growth. For example, at MultiplyMii, you can save up to 83% on labor costs.
- Access to a global talent pool
Offshore teams allow you to tap a diverse pool of professionals. They may have specialized skills and expertise that may be difficult to find locally. According to the 2023 Remote Workforce Report: The Rise of Globally Distributed Teams, quality applicants increased after their company adopted a distributed remote workforce model.
This allows you to create a dream team of individuals with unique perspectives bringing fresh ideas to the table.
- Increased productivity
Speed up project completion by having your offshore teams work around the clock. With offshore teams, you can maximize their productivity. A study found that around 40% of employees work longer at home than in the office.
Moreover, team members in different time zones can opt for a working schedule outside your local shift hours.
- Flexibility and scalability
Offshore teams enable you to scale your workforce up or down based on project demands and business needs. There may be times when there's a sudden surge in workload or the need to downsize. Offshore teams provide your business the flexibility to adapt to your changing circumstances.
- Improved service coverage
Your business can provide 24/7 customer support with teams in different time zones. This setup ensures customer inquiries and issues are addressed promptly. Ultimately, it'll lead to higher customer satisfaction and loyalty.
Offshore teams have revolutionized the way businesses operate in today's globalized world. They're a cost-effective, flexible, and scalable solution. This kind of team also allows companies to tap into a global talent pool and maximize productivity.
As technology continues to advance and connectivity improves, the use of offshore teams is expected to grow even further. It's posed to become an integral part of many businesses' strategies for success.
Challenges in Managing Offshore Teams
Managing offshore teams is no walk in the park. To make it effective, look for the following challenges you may face when handling one.
Communication barriers
One of the challenges in managing offshore teams is overcoming communication barriers. Differences in language, cultural norms, and accents can hinder effective communication, leading to misunderstandings.
Addressing this challenge is crucial. Do your best to establish clear and open communication channels. You can also provide language training and promote a culture of transparency and collaboration.
It’s also essential to recognize that communication goes beyond language. There are cultural nuances that can create barriers. It can be indirect communication styles or different approaches to expressing opinions. Building trust and fostering open dialogue can help bridge these gaps. It can ensure everyone feels comfortable expressing their thoughts and ideas.
Moreover, technology can play a vital role in facilitating communication. Enhance team collaboration with video conferencing tools, instant messaging platforms, and project management software. These tools allow your team members to connect and share information seamlessly. This will help you overcome communication barriers and promote a cohesive working environment.
Cultural differences
Cultural differences can also pose challenges when managing your offshore teams. Work practices, communication styles, and decision-making approaches vary. You need to adopt a flexible and inclusive management style. You may also need to embrace these differences and foster a multicultural work environment. All of which aim to create a more harmonious and productive team dynamic.
When working with offshore teams, it is essential to understand and respect different cultural norms and values. Be aware of holidays, religious observances, and local customs that may impact their work schedules and deadlines. Through this, you can build trust and foster a sense of inclusion among team members.
Furthermore, promoting diversity and inclusion within the team can lead to a broader range of perspectives and ideas. Encourage collaboration and create opportunities for cross-cultural learning. It can help your team members better understand and appreciate each other's backgrounds, enhancing creativity and innovation.
Time zone challenges
Managing your offshore teams can be a logistical challenge dealing with different time zones. Scheduling meetings, coordinating deadlines, and ensuring smooth communication can become complex. To address this challenge, you must establish clear guidelines for scheduling. You can leverage technology tools for real-time collaboration.
Additionally, you can promote flexible working hours to accommodate different time zones. Many big brands and companies champion flexible working hours for their employees. They see the positive impact it has on their employees and their productivity.
Effective time management is crucial when working with offshore teams in different time zones. Set up agreed-upon meeting times to accommodate most of your team members. You can also use shared calendars and scheduling tools to coordinate deadlines and tasks.
Doing this can help ensure active participation and engagement. According to the Gartner 2021 Digital Worker Experience Survey, 43% of participants say flexible working hours contributed to their productivity.
Flexibility is key when managing your offshore team across multiple time zones. Offer flexible working hours or implement staggered shifts. This can help them balance personal and professional commitments while ensuring continuous collaboration.
It is also essential to establish clear communication protocols. You can provide detailed agendas and share meeting minutes to keep everyone informed and aligned.
Reap the benefits of proactively addressing time zone challenges and implementing strategies. By doing so, you streamline communication and collaboration and optimize the productivity and effectiveness of your offshore team.
11 Effective Ways to Manage Offshore Teams
Now that you’re set on creating and managing an offshore team for your business. Here are ways you can ensure they are empowered and motivated to keep working with you:
- Establish clear communication channels
Clear and effective communication is vital to managing your offshore teams successfully. Use communication tools like Zoom, Slack, ClickUp, or other platforms that help you collaborate efficiently. These can facilitate constant and seamless communication between teams.
- Embrace cultural differences
Embracing and celebrating cultural differences can foster a supportive and inclusive work environment. 82% of employees say they want to be seen by their organization as a person, not just an employee.
Encourage your team members to share their traditions, holidays, and customs. It encourages an atmosphere of mutual understanding and respect.
- Implement effective project management tools
Invest in project management tools that streamline collaboration, task assignments, and progress tracking. These tools can help manage projects efficiently and ensure all team members are on the same page.
Check out MultiplyMii’s productivity tools to help you manage your offshore team!
- Schedule regular team meetings and updates
Schedule regular meetings with your team to foster camaraderie and alignment. You can also apply helpful business frameworks, like the Entrepreneurial Operating System (EOS) model, that many successful companies follow (MultiplyMii included).
The EOS model focuses on six critical components of your business: vision, people, data, issues, process, and traction. It encourages a structured approach to ensure leaders and members are aligned. Success with this framework includes providing updates on ongoing projects via weekly L10 meetings, implementing IDS (identify, discuss, solve), and more. This aims to improve overall performance, enhance communication, and drive sustainable growth.
- Foster a strong team culture
Building a strong team culture is essential for the success of offshore teams. Encourage your team members to collaborate, share ideas, and support one another. You can also organize team-building activities and virtual social events to foster a sense of belonging.
At MultiplyMii, we help our partners build a healthy remote work culture. We’re committed to going beyond the conventional boundaries of staffing. We foster connections through virtual get-togethers, champion employee appreciation, etc., creating a vibrant and thriving remote work culture.
- Provide adequate training and development
Invest in continuous training and development to enhance the skills and knowledge of your offshore team members. Empower your employees through online courses, mentorship programs, and skill-building workshops, enabling professional growth.
- Set clear expectations and goals
Define expectations, goals, and key performance indicators (KPIs) to ensure alignment with business objectives. Begin integrating this from the recruitment process by creating an accurate job description. Doing so helps you filter your potential hires from the get-go, setting your expectations from the start.
Moreover, you can establish a framework for regular feedback and performance evaluations for your offshore team. This will help you track progress and provide constructive guidance.
- Encourage feedback and open dialogue
Encourage your team members to share their feedback, ideas, and concerns. Create a culture where everyone feels comfortable expressing their opinions and suggestions. Doing so can help you foster innovation and continuous improvement.
- Implement a robust performance management system
Establish a performance management system that rewards and recognizes exceptional performance. Implement incentives to motivate and retain your top-performing offshore team members. It can be through bonuses, promotions, or public acknowledgments.
- Promote work-life balance
Recognize the importance of work-life balance. A recent survey by Flexjobs shows 29% of those who considered quitting their job or have already resigned cited poor work-life balance as the main reason.
Offer flexible working hours and promote regular breaks. Ensure your team members prioritize their well-being. Encourage healthy practices among offshore team members to maintain productivity and job satisfaction.
- Recognize and reward good performance
Acknowledge and celebrate the achievements of your offshore team members. Recognize their contributions through verbal appreciation, certificates, or incentives. Doing so boosts their morale and motivation and fosters a culture of recognition and appreciation.
Offshore teams are valuable if you seek to expand your operations and tap into a global talent pool. However, managing offshore teams requires a lot of effort and adjustments.
Ensure smooth collaboration, maximize, and achieve success in today's globalized business landscape. Manage offshore teams by following the 11 effective ways outlined in this article.
Create Your Dream Team With MultiplyMii
Elevate your business to new heights by partnering with MultiplyMii!
We are a premier offshore staffing firm with expertise in building a dynamic offshore team.
We bring together top-tier Filipino professionals with diverse skill sets, innovative ideas, and dedication to excellence to achieve your business goals.
Whether seeking cost-effective solutions, access to global talent, or enhanced productivity, MultiplyMii empowers your business to create a dream team that drives success in today's competitive landscape.
Book a discovery call with us today to build your dream team!
