Offshore outsourcing definition
Offshore outsourcing, also referred to as Business Process Outsourcing (BPO), is the process of having work done for your business using qualified staffing solutions from countries with lower labor costs.
About offshore outsourcing
- Offshore outsourcing definition
- About offshore outsourcing
- Benefits of offshore staffing
- Offshore outsourcing examples
- Offshore vs onshore outsourcing
- Offshore outsourcing pros and cons
- Offshore outsourcing Philippines
Offshore outsourcing, also referred to as Business Process Outsourcing (BPO), is the process of having work done for your business using qualified staffing solutions from countries with lower labor costs. Commonly IT, sales and administrative roles are carried out for businesses across the world from countries such as the Philippines and India.
Companies can benefit from accessing other countries who have more resources for people with specialized skills. One popular example of offshore outsourcing is customer service through call center companies. These BPO companies offer quality customer service at a much cheaper rate than hiring locally.
Like nearshore outsourcing, companies prefer having minor tasks outsourced so that the in-house team could focus on the vital functions of the business. One perk of offshore outsourcing for businesses is that they do not need to think about the overhead expenses for the benefits of additional in-house employees.
Overall, the company could benefit from lower human resources costs, equal or higher-quality outputs, and higher profits.
Benefits of offshore staffing
The world is becoming increasingly globalised. Technology, software and communications improvements now enable easy access to a globalised workforce. This has many advantages, but the primary benefits of offshore staffing are that:
- You can significantly cut costs (typically saving 60%-80%)
- Access large pools of highly qualified and highly capable staff
- Source staff from across the globe instead of being limited by the local population
The benefits of offshore staffing impact small, medium and enterprise across the globe. These businesses are able to access more affordable resources to help streamline and grow their business. This is a win-win for all parties involved.
Offshore outsourcing examples
Companies turn to offshore outsourcing for cheaper wages and better quality work. Just like nearshore outsourcing, companies prefer having minor tasks outsourced so that the in-house team could focus on the vital functions of the business.
One popular example of offshore outsourcing is customer service through call center companies. These BPO companies offer quality customer service at a much cheaper rate than hiring locally.
Offshore vs onshore outsourcing
The opposite of offshore outsourcing is onshore outsourcing, which is the practice of outsourcing your business functions and non-core teams to a BPO firm in the same country where the business operates. It is also commonly referred to as “domestic outsourcing.”
Unlike offshore outsourcing, the business does not save as much on employment costs – which is the main reason why businesses turn to outsource in the first place. Since the outsourcing provider is in the same country, both companies will have the same cost of living and labor laws applied.
However, with onshore outsourcing, you wouldn’t have to deal with cultural and time-zone differences.
Offshore outsourcing pros and cons
Companies can turn to offshore outsourcing for almost every business role – whether they’re in need of customer service teams, virtual assistants, bookkeepers, graphic designers, IT consultants, and more. Further, before diving into the world of offshore outsourcing, it’s best to be informed of its pros and cons.
Pros of offshore outsourcing
- Substantial savings
- Access to a flexible, diverse, versatile, and proficient offshore team
- Experienced and competent team leaders will guide your remote team
- Diminished cost and less legal responsibilities (because your outsourcing provider will take care of everything)
Cons of offshore outsourcing
- Occasional delivery delays
- Time zone and cultural barriers
- Possible disclosure of confidential information
Offshore outsourcing Philippines
The Philippines is the leading offshore outsourcing destination in the world. With 1.3 million BPO workers and counting, large corporations and even small to medium-sized enterprises all over the world trust that their Filipino workers and remote teams can provide excellent outputs, customer service, or IT assistance at a cost-effective price.
Outsource Accelerator provides you with the best customer service outsourcing companies in the Philippines, where you can save up to 70% on staffing cost. We have over 5,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, outsourcing.