Outsourcing & Offshoring
In today’s modern world, offshoring and outsourcing are becoming more prevalent. First-time clients may find it bewildering to hire a third party outside of a company to complete a task that is typically carried out by people internal to the company because services like technical support, desktop support, application development, and programming are often outsourced along with it. The driving forces in today’s corporate environment are often more dynamic and concentrated on carrying out key operations that generate value internally, where an organization may most effectively use its own core capabilities while reducing costs and expenses.
Let’s first differentiate Outsourcing and Offshoring. Offshoring and Outsourcing are two distinct concepts that, although being frequently misconstrued, are essential for building a sustainable operations structure and better business efficiency.
Utilizing a third-party provider’s services is a process known as Outsourcing. Outsourcing company is commonly used to establish interactions rather than providing tasks to team members directly. The outsourcing service providers, who also play an active role for clients, allocate all the necessary tasks and services to a trained workforce with adequate resources and labour for your needs. Most companies take this action because a much more crucial aspect of their business has rendered them unable to handle smaller issues, and while some use it to accomplish administrative jobs and data input more cost effectively than the work could be done remotely.
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. Offshoring usually entails the transfer of jobs because it gives you the flexibility to decide who you want to operate processes within your business. More demanding roles, such as those in online and app development or complicated technical research, are handled by offshore workforce. You can use an offshore migration that has been properly managed for just about every business function you can imagine.
BENEFITS OF OFFSHORING
The fact that cost is the most important factor in offshoring shouldn’t sound surprising. The savings that may be made by using cheap foreign labour in countries that have a significantly lower cost of living are attainable to everyone, especially when the average annual pay in Australia has increased to $90,000 (Chau, C., 2021, August 24. Australia’s annual average full-time wage hits A$90,000 | HRM Asia.) The extra costs related to local employment, such as payroll tax, superannuation guarantee deductions, and mandatory insurance, are not present when using offshore labour. That’s prior to the associated overhead savings being considered. Office space in Sydney typically costs AU$95 per square foot (or AU$1,025 per square metre), which is a significant expense for nearby businesses that need to house their workers. The same quality real estate in downtown Manila is available for the value of AU$3 per square foot, or roughly AU$33 per square metre, and it offers easy access to a workforce of more than 7 million people. Read more
UTILIZING AN INTEGRATED OFFSHORING SPECIALIST
The benefits of working with an offshoring company are numerous if your goal is to make the transition from onshore to offshore as smooth and easy as possible. You can’t acquire in-market knowledge and skills overnight, but you do need them to start operating somewhere new. A work that is generally carried out by employees within the company may seem odd to most businesses when a third party from outside the company is hired to perform them. Worries like wasting money by investing in something that has no guarantee for your business’ growth and success are going to be there. A competent offshoring company will remove the uncertainty associated with figuring out a new country’s laws, rules, and labour market, thus assisting in instigating the attainment of those costs and efficiency savings.
How do you avoid wasting money and recruiting inadequate foreign workers? Worry no more, as Integrated OS guarantees that we will provide the right remote team to meet your company’s specific needs to have a manageable smooth and flawless integration. This is precisely why companies across Australia partner with Integrated OS, who have pioneered a cutting-edge approach and offer solutions that are suitable for your company. Our team ensures that every employee is a qualified long-term asset to developing your remuneration system to efficiently encourage your new offshore team.
Integrated OS is an independent, family-owned company with an exceptional record for staff retention. Get in touch with us to learn more about how Integrated OS can help you and your business save time, money, and stress, as well as allowing your business to grow in an efficient manner by building your own remote team of talented professionals.