A guide to Offshoring,
WHAT IS OFFSHORING?
Offshoring is the process of sourcing the best remote team members to provide qualified and highly skilled professionals who will fit the business and contribute to its growth.
The process entails a company hiring a third-party provider in another country to manage its operational needs. It is a practical business tactic which provides the company with access to skilled individuals who will operate processes within your business. Operations that need more work and attention, such as those in web and app development or complex technical research, are usually done by offshore teams.
Since many companies are still confused of what offshore actually is and why having it would be beneficial for the business, this blog will go into more detail as to why offshoring is something that your business must consider along with the best practices that will help you get started.
REASONS WHY YOU SHOULD CONSIDER OFFSHORING YOUR COMPANY
1. Offshoring is a Cost-Effective Strategy
In developed countries like Australia, where the cost of living is much higher, it is more difficult to source highly skilled people at a reasonable labour cost. Offshoring can indeed be beneficial in this circumstance as it is much more cost effective to hire the same talent elsewhere, in countries like the Philippines, than it is to hire it internally. With this, you allow your business to reinvest funds into your business.
2. Dispersion of Offshore Operation Improves Productivity
Both tasks that require immediate attention and ones with lower priority exist in a company. Given the high labour costs, some businesses are struggling with a shortage of in-house employee workforce. This leads to some companies handing their in-house employees—who should have been focusing on their core duties and more important tasks— work on even lesser priority and time-consuming tasks that are not suitable for each set of their skills, which affects their productivity and efficiency for the company.
Utilizing an offshoring provider can give your company a better organizational structure when allocating tasks that needs attention. Innovation, web and app development, advanced technological research, and analytics can all be delegated rather than just the basic tasks.
3. Scarcity of Skilled Individuals
Given that hiring highly qualified staff is among the most expensive aspects of running a business, offshoring has made it possible for companies to do so in countries with cheaper labour costs. As a result, businesses may use their finances to grow their operations and services and expand their workforce through offshoring because it will allow them to do so while also reducing the cost. This will prevent a shortage of skilled individuals.
Considering how expensive the labour costs are, Australia is one of the countries that suffers a scarcity of skilled workforce. Australian business owners have not yet noticed a change in the labour shortage matter, according to an article from NAB News entitled “Australian businesses still struggling to fill jobs”, because hiring and retaining employees is still a significant challenge and is preventing some SMEs from expanding as quickly as they would like.
4. Accessible to your Growing Team
Offshoring is an entirely distinct idea from outsourcing given that you have full control over the employee. You can actively engage in their training, just as you would do locally, to help them further develop their abilities and talents, which will help them grow as individuals. They might even turn out to be a long-term asset, depending on how effectively they are administered.
Offshore team management is a system that Integrated Office Solutions, Inc. has established so they can effectively manage and direct the workforce. Because of this, there is no question about how driven their employees are and how high their retention rate is—over 90%, like no other.
Integrated Office Solutions, Inc. created a new model that enables business leaders to augment their teams from a massive pool of highly skilled talent at a fraction of the local cost. This requires a different level of transparency, a brand new set of values, a revolutionary business structure, and in fact — a whole new operating system altogether.
Get in touch with us to know more about the Secret Sauce Process that Integrated OS established to help you build a remote integrated team!