Are you still undecided whether to try offshore outsourcing? While there are people who don’t prefer this business approach, others admit the benefits of hiring third-party partners outweigh its flaws. To paint you a picture, here are the pros and cons of offshore outsourcing.
Pros of Offshore Outsourcing
1. Cost Reduction.
You don’t have to doubt that offshore outsourcing cuts your costs. Here are reasons, in terms of cost-cutting, why business owners should outsource
2. No recruitment costs.
You don’t have to advertise for vacancies, spend man hours on interviews, even coordinate with manpower agencies. You have reduced effort in setting-up and maintaining workspaces and facilities. You will spend less on holidays and bonuses. When you outsource, you cut back on sick pay and sickness coverage, as well as maternity/paternity leave costs. Another advantage when you have an offshore partner, is you eliminate non-productive employee time–breaks, training, lateness, etc.
3. Higher Output Rates.
Studies prove employees can focus on their tasks more if they work outside the confines of an office. When you outsource regular tasks, you only deal with urgent matters. This efficiency results to better yields.
4. Promptness and Expertise.
Most of the time, when you outsource, you hire experts in their field. With this, you’re tapping into a knowledge base that can complete tasks faster and with better quality.
5. Time Zone Advantage.
This is another benefit to push businesses to hire offshore staff. Outsourcing to a country that has a huge time difference allows you the benefit of round-the-clock services.
6. Staffing Flexibility.
Businesses with seasonal demands need not think of the burden of hiring temporary workers. Ask your offshore partner for added labor, only when needed.
7. Business Focus.
When you hand over routine activities to trained specialists, you’ll be able to handle other tasks, which needs your attention and skill.
8. Chance to Help People.
When you offshore from a third-world country, you give them more job opportunities, which results to better economy.
Cons of Offshore Outsourcing
1. Risk of Exposing Confidential Data.
The danger lies when the tasks outsourced relates to human resources, payroll, and recruitment. You risk the chance that others might leak your private information.
2. Lack of Focus.
There are times that your partner handles several jobs at a time. They may juggle multiple projects and may not work on your designated task alone. This divided attention may result in less than stellar service.
3. Communication Problems.
Sometimes you will have trouble talking with your offshore partner. Your message may mean something else to them. However, you will not encounter this when you work with offshore companies in the Philippines.
4. Loss of Management Control.
In a worst-case scenario, you might lose control of the operations and deliverables. It’s best not to overlook this chance.
By now, you must notice how outsourcing is a smart business move. With the economy’s status nowadays, outsourcing is the best way to run your business. The disadvantages mentioned only occur when you choose a wrong partner. That is why when you hire offshore staff, you need to choose one that with a good record of accomplishment, which you can trust over the years.
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