No matter the size of a company, business owners are always on the lookout for ways to better accomplish their goals while continuing to lower overall costs and improve productivity rates. Outsourcing is a great way to help companies do just this. Thankfully, with advancements in technology and communication methods, businesses have the capability to work with teams and individuals from anywhere in the world while allowing professionals to perform their job tasks wherever they need to.
From administrative tasks and accounting to IT and offshore software outsourcing, the practice of outsourcing tasks is incredibly beneficial for companies of all sizes. Outsourcing providers, such as BairesDev, offer many different services to help companies get their tasks done.
Outsourcing, specifically offshore outsourcing, can be especially beneficial for businesses lacking the resources, time, or budget to hire and maintain in-house employees. Offshoring relieves executives and team leaders of the stress of hiring full-time staff members while creating expedited, more cost-effective, and streamlined business solutions.
What is Offshore Outsourcing?
When a company considers outsourcing, they must first decide which type of outsourcing best fits their needs: offshore, nearshore, or onshore. Onshore outsourcing is the practice of partnering with a third-party company within the same country as the hiring company. This option is beneficial in terms of the cultural match, similar time zones, and no language barriers (normally), but is the most expensive option of the bunch.
Nearshoring is when the outsourcing provider is in a country or timezone near that of the hiring company. This still offers the benefit of similar time zones and a possible cultural match while also helping to lower costs. Offshoring is the most cost-effective version of outsourcing as it involves hiring a provider in a country far from that of the hiring company, typically in a country with a much lower cost of living.
Why Do Businesses Outsource?
Some businesses can handle their normal daily activities but need a bit of outside help when their in-house employees reach capacity or new projects arise that don’t justify hiring a full-time employee. There are many benefits and valid reasons why companies choose to outsource tasks, including:
- Cost-Efficiency – A skilled team or even skilled outsourced individual is generally much less expensive than hiring an in-house employee or team. By choosing to offshore outsourcing, hiring companies not only save the cost of a full-time employee, but also don’t have to pay for things like health insurance, benefits, paid time off, and such.
- Improved Effectiveness and Efficiency – Outsourcing in general provides hiring companies with access to a wide variety of expertise and talent that they may not have had access to otherwise. This improves workflow effectiveness and efficiency.
- Focus on Core Business Functions – Outsourcing allows businesses to focus on their core service offerings as it frees owners, managers, and employees to spend their time on core business activities.
What Can Companies Offshore Outsource?
Some businesses understand the benefits of outsourcing their needs to offshoring providers, but they might be unsure of the types of tasks and projects they are actually able to outsource. Depending on the provider, there are many different business tasks to outsource to save time and money, including:
- Software Development – Offshore software development companies can reduce costs, shorten development timelines, mainly because they offer a wide array of experienced professionals to get the job done. Outsourcing software development projects is an ideal solution for completing projects that are a one-time thing, especially if the hiring company isn’t in need of any full-time developers on their team.
- Accounting – Outsourced accounting firms help with many different financial services, including invoicing, accounts payable and receivable, bookkeeping, as well as financial analysis, reporting, and planning. Merely outsourcing payroll alone saves businesses time, money, and stress.
- Information Technology – Managing all of a company’s information technology needs is a time-consuming, tedious, and extremely expensive process to manage in-house. Offshore outsourcing providers help companies keep costs at a minimum while still taking care of all of their IT needs. From handling hardware and software support to setting up network solutions, these companies offer expertise and know-how when it comes to managing large-scale IT operations.
- Human Resources – Employee acquisition and human resources is one area of business that is easily taken care of by a third-party provider. Outsourcing companies specialize in this field to help keep costs at a minimum for the hiring company. They help by screening potential employees, checking references, and managing other human resources requirements to help companies run smoothly even while integrating new employees.
- Marketing – Outside marketing professionals offer a fresh perspective on companies to provide marketing advice that internal employees simply can’t give. From content and brand development to press releases and social media, outsourcing is a great solution for a company’s advertising and marketing needs.
Outsourcing in general is an exceptional way for companies to accomplish their goals and carry out necessary tasks while still getting to focus on their core revenue-driving functions. Offshoring specifically helps lower costs and provides businesses with skilled professionals that they would have otherwise not had access to. Finding the right offshoring provider helps a business grow at a faster, more sustainable rate than traditionally hiring.