Offshoring staffing vs outsourcing. Offshoring means you source talent “off shore”, not in your country, but look to another country where conditions are more favourable to outsource your work. You can hire someone in-house but have them work in Ho Chi Minh City while you work in Sydney. This is an in house offshore employee […]
Offshoring staffing vs outsourcing.
Offshoring means you source talent “off shore”, not in your country, but look to another country where conditions are more favourable to outsource your work. You can hire someone in-house but have them work in Ho Chi Minh City while you work in Sydney. This is an in house offshore employee but you are not outsourcing in this case because the person is not outside of your company.
Outsourcing is basically when you choose to work with people who are not in your company without any constraint on location. So they can be anywhere around the world and you have less personal control on how they perform the task.
So to summarise, offshoring is based on location while outsourcing is based on the relationship between the company and the person doing the work.
So why is offshoring increasingly the better option?
The Answer is: Cost-Effective
Obviously, the most attractive benefit is the cost effectiveness of having an offshore workforce. Technology has made offshoring an extremely viable option. Doing business is based on the ability to communicate and this process is done electronically or digitally whether it is from office to office in the same building, same city or another city or another country. So why not have some of your business process based in a country where that process is cheaper. Cheaper doesn’t mean you need to sacrifice quality or efficiency either and in most cases, you can afford more qualified and hardworking staff and still be making vast reductions in staffing costs.
You can also increase operational capacity without the inherent overheads. As your workforce grows, your fixed costs such as rent, IT, equipment and utilities do as well. You would also need to spend time and money on training, induction and the resulting human resources requirements this can be very costly. Companies can introduce previously outsourced work as in-house departments such as marketing and web development as the staff is available at a vastly reduced cost. An offshore services provider will look after everything reducing cost, time and effort attaining these essential requirements. It can allow you key staff more time to work on more productive tasks which add value to the business instead of caring out low value but essential administrative tasks.
Outsourcing has in the past created a number of negative issues within industry mainly with the reliance of some companies that the outsourcing company can provide exactly what they are contracted to achieve. There are no such issues with offshoring as you stay in complete control, the offshoring staffing service is there as a facilitator and to assist with local conditions such as licences, working environment, government regulations, recruitment, payroll etc. Offshore staffing services in Vietnam such as Remote Resources in Ho Chi Minh City provide a platform to hire your own staff which is, in turn, hosted, supported and managed in their new business centre offices. The company can also help with all the technological services to run your offshore office and have a trained staff that will maintain and deploy communications for your team.
Technological development is growing rapidly as well as a reduction of barriers to business entry. More and more companies are taking up the option of implementing an offshore workforce. It is becoming obvious that this is making companies able to be extremely competitive in the market place as a result. So if you are looking for a cost effective and efficient solution to making a difference to the way you do business go no further than offshoring, it makes sense, if you are not considering it, your competitors will be.