Most organizations are acknowledging the importance of offshoring. Businesses around the world choose to offshore to meet their operational needs and explore new markets.
Companies of all sizes and industries are experiencing heightened customer expectations, demands, and needs. With these growing demands comes more work and expenditures.
To cope with these shifts in demand and expectations, companies have started enlisting offshoring support. With a market size value of $232.32 billion in 2020, the global outsourcing market is a phenomenon that continues to transform economies.
What is offshoring?
Offshoring refers to the practice of transferring some functions of your business to a company in a different geographic location. Organizations usually do this strategy as it involves numerous offshoring benefits, such as accessing a wider talent pool at a low overhead cost.
Offshoring outsourcing helps strengthen a business’s performance and compete with other organizations in the industry. To do this, organizations tend to hire top talents remotely.
Offshore employees can help manage essential business operation tasks, which means you and your onsite employees have more time to focus on their own tasks. This boosts productivity and work-quality, whilst reducing overhead costs.
Several large companies from the United States and Europe usually delegate their services to offshore destinations like China, the Philippines, Malaysia, and India.
Offshoring vs nearshoring
Offshoring is popularly known as the most effective budget-cutting option for businesses. It involves moving operations to a region that is distant enough from its headquarters to warrant a full separation from the client company.
With many offshoring benefits involved, organizations seek offshore solutions in distant countries with a wide range of talent pool and lower expenses. The time zone differences also help firms offer round-the-clock support to their customers.
On the other hand, nearshoring means outsourcing to a neighboring country that is located in the same region or continent. This helps firm owners who like to hold frequent personal meetings with their remote team at a lower cost.
You can also get more control over your organization and potentially invite your nearshore team to your main headquarters. Further, nearshore agencies usually offer cultural compatibility that reduces potential misunderstanding during projects.
5 offshoring benefits your business can leverage
When your workload grows, it seems logical to hire additional employees. However, recruiting an in-house team is more expensive than some companies can afford.
That’s when companies turn to offshore solutions. There are many offshoring benefits that can help you streamline your operations while improving the bottom line.
Here are five offshoring benefits your company can take full advantage of:
1. Compete in the global market
Offshoring can give your company the resources it needs to compete in the global market. It allows you to leverage a pool of highly skilled and very qualified experts in any field.
This is one of the offshoring benefits that enable you to expand your business into international markets by leveraging the expertise of companies located outside of your home country.
Partnering with a third party provider also allows you to present your products or services to a foreign market — further enhancing your branding strategy.
2. Save on overhead expenses
An offshore outsourcing partner can help you save on overhead costs such as providing hiring and training new hires and HR management. It allows you to prioritize your core capabilities while saving valuable time and money.
Offshoring agencies provide their talent with high-quality resources so you can start expanding your services without investing so much money in the latest infrastructure, technology, and office space.
3. Focus on core functions
This is among the offshoring benefits that allows you to prioritize your core capabilities while saving valuable time and money. It enables you to divert your excess labor and operational funds and use it to improve your organization’s products or services.
Businesses that offshore their functions can focus on strategizing their growth without worrying about a potential decline in the quality of work in other roles within the firm.
4. Create new market opportunities
Offshoring helps create new market opportunities for your business. This is also one of the offshoring benefits that is highly favorable for firms. They can easily access new target markets, become closer to existing and potential clients, and effectively research new audiences.
Your outsourcing partner can also develop the best strategy that you can use in entering a new market and the project management skills needed to implement the strategy.
5. Minimize risks
The right offshoring partner offers backup and disaster recovery plans so you can rapidly respond to unexpected situations and get operations back on track quickly. It enables you to reduce the risks of work lags, insufficient customer engagement, and communication, among others.
Aside from that, if you are planning to expand your services to another vertical, a flexible offshoring partner could help you make the transition as easy as possible.
Build an offshore team with MVP Asia Pacific
In a global economy where business opportunities appear anytime, offshoring can help you determine how to take advantage of these opportunities at a lower cost.
For firms that want to scale up their operations while staying on budget, MVP Asia Pacific can help you. Through their teams of skilled employees, your company can easily find the resources you need at a fraction of the cost.
Their employees are highly trained in software development, marketing, graphic design, customer service, data entry, virtual assistant, finance and accounting, and cyber security.
As an offshore agency, MVP serves as a bridge between top offshore talents and small, medium, and large-sized enterprises. No matter the job, the MVP team will always be there to support your business.
Visit MVP Asia Pacific’s website now to know about their company.