What Is Offshore Outsourcing? How It Works And Benefits

What do you need to know about offshore outsourcing?

1. What is offshore outsourcing

2. Outsourcing vs offshoring

3. Benefits of offshore outsourcing

More and more companies are choosing to outsource talents and services to a different country to take advantage of cost savings while accessing equal expertise.

This is where offshore outsourcing comes in. In this article, you will learn more about the concept, how it works, and the benefits you will experience once you decide to outsource talents and services from countries outside your own. Read on.

What Is Offshore Outsourcing

In the simplest terms, offshore outsourcing means that you choose to avail of the services of a third-party company from another country.

This could be sourcing jobs to countries such as the Philippines which provides skilled and experienced professionals but for more cost-effective labor expenses compared to locally.

Offshore outsourcing combines the benefits of offshoring and outsourcing.

Offshore outsourcing usually starts by searching for service providers through the Internet.

Then, once the communications with the external company have started and an agreement is set, the services are usually provided remotely from the offshore country.

That’s why offshore outsourcing is suitable for hiring IT professionals — such as software developers, tech support, project managers, and many more. 

Outsourcing Vs Offshoring

To better understand the concept of offshore outsourcing, it’s a good idea to learn more about each one. 

• Outsourcing

Outsourcing occurs when you hire an external company to perform a business function or service for you.

This has become more popular as a way to reduce costs because you can accomplish the same task without having to spend time and money on hiring, training, etc.

It also allows you to access a wide pool of talents that specialize in performing the service you need, so you can improve efficiency in your company. 

Overall, by delegating tasks to people who are trained and experienced in them, you can focus on the core areas of your business.

Outsourcing can be done by availing of services to companies in the same location, or abroad.

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• Offshoring

Offshoring occurs when you obtain services internationally or overseas.

In other words, it’s transferring jobs to another country.

Offshoring is one of the several forms of outsourcing, too.

One of the major benefits of offshoring is that you can offshore services to countries with talented professionals, but with wages or labor costs.

Some countries also have much better human resources for specific types of tasks.

For instance, the Philippines has plenty of English-speaking and college-educated professionals for business process outsourcing and IT. 

Benefits Of Offshore Outsourcing

The benefits of outsourcing and offshoring are similar, but together, it allows you to experience huge advantages.

Below are the benefits of offshore outsourcing:

1. Access to skilled talents

Offshore outsourcing allows you to access world-class talents that specialize in certain skills.

Since you’re not limited when it comes to location, you can choose from a wider pool of professionals to help you with business functions.

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There are certain offshore outsourcing companies that have skilled and experienced talents that can help you. 

2. Increased efficiency

By offshore outsourcing, you can obtain the assistance of skilled individuals who are ready to jump right into the job when needed.

Since they specialize in the task that you need to get done, you can expect to experience an increase in productivity and efficiency immediately.

This way, you can save time on hiring, training, and retaining talents!

3. Cost-effectiveness

Save money by choosing third-party companies that can produce quality work that you expect, but for much lower costs than locally.

By outsourcing from countries where wages are low, you can save more on labor costs.

Since you’re outsourcing, you can also reduce expenses associated with hiring, training, rent, equipment, etc.

4. No timezone issues

Offshore outsourcing companies can provide services according to your timezone, so your company can get the talents and solutions it needs to scale your business with ease.

Key Takeaway

To conclude, offshore outsourcing refers to sourcing talents and services from companies outside your country.

This is often done to save on costs while accessing a wider pool of talents globally.

With offshore outsourcing, you can delegate tasks to third-party companies, so you can focus on core aspects of your business and grow your company to new heights.

If you’re interested in offshore outsourcing, you can contact us here at Human Incubator.

We are based in Cebu, Philippines.

We can support you if you’re planning to expand overseas, looking for trained and experienced professionals, or want to migrate your business to the cloud.

When you partner with us, you can start growing your business with the help of our global talents.

If you need more information on our services send us a message.

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