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The Potential of Offshore Outsourcing for Your Business

February 21, 2019

Offshore outsourcing is a business practice that can save valuable internal resources. If a team lacks the capacity to complete a task, outsourcing can make sure it gets done — often at a reduced cost. Outsourcing also enables an organisation to utilise the specialisation of a third party, which means outsourcing can get work completed more quickly, more affordably, and even more accurately.

However, a business can’t outsource to just anyone. Outsourcing to the right person and/or team is essential to success. These are some examples of how you can utilise outsourcing and reap its benefits.

 Offshore OutsourcingWhat Is Offshore Outsourcing?

Offshore outsourcing is the most popular type of business process outsourcing (BPO) and it has a strong reputation. When you need something done quickly and affordably, offshore resources are the go-to. Of course, it’s not the only way to outsource your business practices. There are actually three different types of BPO that you can participate in as a business, but there is not a right or wrong choice. It really comes down to your budget and requirements. Typically, offshore outsourcing is the most affordable option for any process.

  • Offshore outsourcing is when you hire a service out to a company overseas. For instance, if a business in the U.S. hires a company in India, that’s offshore outsourcing.
  • Onshore outsourcing is when you hire a company within the same country as you. For instance, if a business in the U.S. hires a company also in the U.S., that’s onshore outsourcing.
  • Nearshore outsourcing is when you hire a company from a neighboring country. For instance, if a business in the U.S. hires a company in Canada, that’s nearshore outsourcing.

No matter which type of outsourcing you participate in, you’ll find BPO to be highly effective. Cost savings is one of the major benefits of outsourcing, so if this is your primary goal, offshore outsourcing is a must. However, that’s far from the only benefit.

All types of outsourcing will save all sorts of resources. For instance, outsourcing lead generation frees up the time of in-house employees and it also saves money because you won’t have to pay for in-house software or talent to do this type of work anymore. At the same time, you’re working with an entire company that specialises in lead generation services, which means the work will likely get done more quickly and more accurately anyway.

With these key benefits in mind, it’s easy to see why BPO is so popular and, with today’s freelancing platforms, it is even easier to outsource tasks. Whether you need to work with individuals or a national firm, the process is simple.

Tips for Offshore Outsourcing

Offshore outsourcing starts by identifying an activity that a third party could do better, which might be lead generation or even tech support services. Regardless of what you are planning on outsourcing, these tips will prove beneficial.

  • Do your due diligence: There are plenty of companies out there that would gladly take on the work you have to offer, however, that doesn’t mean they’re the best fit for the job. Always research a company’s reputation before hiring them and ask for a demo or trial.
  • Look for a business partner: This likely isn’t a one-off activity because BPO is usually an ongoing process. That means finding a company willing to build a lasting professional relationship matters and this will equate to better service and more competitive rates in the long run.
  • Never hire on the spur of the moment: It might be great to get it taken care of right now, however, an un-researched hire is only going to hurt your business in the long run. It will take a few weeks to find reputable candidates and some sort of conversation should take place with a few of them before you decide.
  • Build connections before you need them: This one will really help you out with the previous tip. Build connections with a diverse pool of talent before you need to hire them and, by doing so, you’ll never find yourself in a pinch. When the time comes that you need something done, you’ll know who to turn to.
  • Always utilise a trial period: Things don’t always work out, and sometimes that’s not the company’s fault. It could be that your processes don’t align or perhaps you end up needing more customisation or involvement than a company is willing to offer. Always utilise a 30- to 60-day trial period and let them know beforehand that you won’t make a long-term commitment until after the trial.
  • Don’t ask for discounts: Your bottom line is obviously important, but trying to haggle on price right out of the gate is only going to hurt a partnership. Shop around to figure out what fair pricing really is for the service you need and remember that reputation and reliability cost extra. You can negotiate the price, but don’t make it all about cost.
  • Keep lines of communication open: You should have a way to contact the company in case of questions and they should have a way to contact you. The first few months will be a learning period so expect both sides to have lots of questions as you learn how the other works. This will ultimately help you learn how to best work together.

Reap the Benefits of Offshore Outsourcing

Offshore outsourcing is nothing new, but the ways in which companies can approach it are changing. From freelancers to full-scale companies, you have plenty of options. Follow the above tips and you’ll be able to select the right opportunity for your company.

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