It seems that just about everybody is outsourcing offshore, and why not?! After all, it’s often more cost effective in terms of time, space and money than it is to hire at home. But what exactly does it mean, and what are the pros and cons of doing so?
From small businesses to large global companies in many niches, such as marketing and IT, there comes a time when everybody needs an extra helping hand, and when you can’t find what you need on your doorstep this is where offshore outsourcing comes in.
Offshore outsourcing is the use of third party, external companies from another country, to carry out important tasks you need doing, either short or long term. Call centres and areas of the manufacturing industry are frequently located abroad. It’s a common occurrence in business and 90% of the time, you probably won’t even realise that the person you’re speaking to is actually thousands of miles away.
But What are the Benefits?
Offshore outsourcing can be an absolute Godsend to businesses who simply do not have the capacity to house 30 employees in their office, whose sole purpose is responding to customer service related issues or doing repetitive marketing activities.
Perhaps you cannot find a company who deals in your area of business or can offer you products, information or components in your niche market in the country you are based and so outsourcing offshore is the only way to get things done. Offshore outsourcing means that you can track down someone who specialises in your field of work, enabling you to have a faster turnaround time due to better knowledge of how to do so in a more accurate way.
Offshore outsourcing is a great way of cutting costs, especially when it comes to the hiring process. Instead of spending time searching for the ideal candidate to work internally for you, you can reduce time and money by hiring an entire workforce elsewhere. Obviously this doesn’t come without its risks, and so you can use companies who specialize in hiring for offshore outsourcing, such as TNT Business Solutions, to do this for you. Operational costs when hiring abroad are frequently lower too.
Wonderful! Where do I Sign up?
Woah, Woah, Woah! Offshore Outsourcing is Not Without Cons…
Although there are many positives when it comes to offshore outsourcing, there are a few negatives to consider too. Now these are not listed here to put you off, they are things that you should simply be aware of if and when you decide to make use of offshore outsourcing.
Yes, it has been an issue for years, but it is something that we are only just reacting to, data leaking. When it comes to confidential data, that is exactly how it should stay and when you outsource things like HR and Payroll, then it means the risk of the exposure of said information. This is why it is so important that you ensure you use companies with fantastic reputations when you do so.
Although offshore outsourcing can be a fantastic way to save on overheads and reduce budgets, there is always the risk of hidden costs. Look out for this, especially when it comes to contracts and terms and conditions when it comes to international business dealings.
As you can see, the pros here definitely outweigh the negatives, but as always, it is important to recognize the risk factors too.
What do you Think?
Do you have any experience in offshore outsourcing? Do you think it’s a great idea or something that’s best avoided? Comment below and let me know what you think.
