Offshoring or Outsourcing? Your choice for your business requirements
Before you choose, let's first understand what outsourcing and offshoring are and how both these ways can help transform your business into a profit-generating venture.
Outsourcing is getting a third party to accomplish specific tasks by an organization to ease off its work. On the other hand, offshoring is contracting work to a firm in another country by the client towards leveraging profits in business.
Both offshoring and outsourcing come with their benefits.
Significant outsourcing advantages over and above getting the best skill for your project are as follows:
• As you decide to outsource a part of your project, you focus on profitable activities while the mundane activities are taken care of by the outsourcing partner. All of this is done without compromising on the quality of service.
• Tasks that are critical for your project but at the same time can increase your operational costs when outsourced, save costs for you considerably. This way, you get skilled resources to work on those specific tasks without additional expenses at your end or delays in the project.
• Outsourcing provides continuity to the organization while reducing the risk that a substandard operation could bring
Offshoring advantages include all of the below:
• Offshoring guarantees more than 60% of cost savings as you decide on moving your entire project to another country, thereby saving on employee cost.
• By opting for offshoring, you would opt for zero overheads. With offshoring, the firm would shift all infrastructure, administration, HR, payroll, and hardware-related worries to its offshoring partner, thereby buying zero stress and ample time for oneself to focus on its business expansion.
• Not to forget the talent pool advantage you would stand to benefit from as the firm offshoring your project. You can build your team with the offshoring partner and get the latter to manage all aspects right from hiring to employee management. Meanwhile, as the offshoring partner takes care of your daily administrative work, all that you are left to address is your dedicated offshore team and their work on your project. This way, you have complete control over your team without getting into employee or office management. Imagine the ease and convenience you get to buy for yourself by offshoring your project at the most competitive price.
• The offshore team formed (comprising of employees shortlisted and selected by you) works as per your convenience in a shift that suits you best. Since the entire team works from the same location, there is better team cohesion and coordination guaranteed with no scope left for internal language and communication barriers resulting in any project delays.
Offshoring is, therefore, a type of outsourcing where the client creates an extension of its business or team in another country wherein the client gets to enjoy all of the below benefits:
• Specialized skills
• Cost-saving on overheads
• Time-saving on employee administration and management
• 24/7 support as per your time zone
• Easy ramp up and ramp down of your team as per your project requirement
• Higher productivity
• Data security and confidentiality guarantee
To conclude, with all of the above benefits, as a business owner or representative, you can rest assured of your firm's growth and success if you have chosen to engage with an offshore service provider for your business needs.