How Your Business Can Benefit From Offshoring
You need to be on your toes all the time to run a successful business and be capable of adapting your working practices to fit the current climate. The ongoing Coronavirus pandemic is a testament to that; look at how businesses all over the world have had to change the way they operate. There can be an overwhelming multitude of considerations: health and safety, marketing, social media, accounting, customer service, order fulfillment, vendors, taxes, IT support-and one of the best ways to ensure that you meet all of these requirements and stay on top of it all is to have work outsourced.
Outsourcing, in its most simple sense, delegates part of the business process to a third-party provider, freelancer, or agency. Offshoring is where you keep control of this specific process, but move it to an offshore location. Many of the bigger American firms, such as Nike, offshore to countries such as China, Malaysia, the Philippines, and India.
It is important that you understand the difference between outsourcing and offshoring. Here, we look at how your business can benefit from offshoring.
It is a cost-effective way of managing business operations
This is one of the most noticeable benefits of offshoring part of your business procedure. There is a massive disparity in labor costs, taxes, employee benefits, and overtime costs between countries, and there is absolutely no decrease in the quality of the work produced. In fact, it is estimated that you can make savings of around 60 percent by sending some of your business operations to India.
Another benefit to this is that, as you are not directly employing them, you do not have a lot of employer liabilities, such as health insurance and employee leave to have to pay. It is easier than ever to pay people in other countries now, whether you want to send money to India or Send money to Canada, the processes are really simple and secure.
Enables you to focus on core operations
Offshoring certain aspects of your business, such as contact center operations, market analysis, or data input, opens up significant amounts of time for your core business operations and gives you time to focus on tasks that will help you grow and develop your business, such as strategic management and marketing.
Saves you money on infrastructure
Because your offshoring company is responsible for that aspect of the business process, it is up to them to supply the technology and infrastructure to allow this to happen, saving you vast amounts of money in overhead costs and infrastructure.
You can take advantage of different time zones
Due to the difference in day/night time between two continents, such as the United States and Asia, it means that when the office or manufacturing site closes for the day, the other opens. This allows your business to operate 24 hours a day, with no increased costs for unsociable hours, overtime, or extra staff to cover that time. This is particularly useful for call center and customer services management.
