Benefits of outsourcing and offshoring

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Benefits of outsourcing and offshoring

 

Benefits of outsourcing and offshoring are you Looking to expand your business without the added costs?

Offshoring and outsourcing the best for you!

Benefits of outsourcing and offshoring
Benefits of outsourcing and offshoring

First what is the difference between Outsourcing and offshoring ?

 

  • Outsourcing

This involves contracting out work to a third party, which may or may not be located overseas.

It’s possible to outsource to a vendor without sending the work offshore, For example, a North American company may hire a local accounting firm to manage its bookkeeping instead of having its own staff members do the work in-house.

 

  • Offshoring

This is when a business moves some of its operations and employees overseas, often to less developed countries with inexpensive labor and resources.

It’s possible for a business to set up offshore operations without outsourcing those processes to a third party,For example, a company may move its call centers to India to serve its North American customers.

 

Benefits of offshoring:

Businesses that choose to go into offshoring will definitely reap both short-term and long-term benefits.

Offshoring allows business owners to focus on strategising business growth as it takes off tasks like accounting and marketing from their hands without worrying about the possibility of a decline in the quality of work.

 

So, one of the ways to experience the potential advantages of outsourcing and offshoring is to combine the two, which could result in even greater cost savings. Offshore outsourcing means delegating certain tasks to a third party in an overseas location.

 

And Now, what are the advantages of outsourcing and offshoring together?

 

1_ Reducing costs:

The latest statistics reveal that companies that rely on  outsourcing and offshoring services save about 30 to 50 percent of the cost they spend compared to other companies It also saves on employee salaries and other work-related expenses.

 

Cost reducing driving companies to adopt offshoring, outsourcing, or a combination of the two in order to stay competitive and you must know also that More and more companies may be considering outsourcing and offshoring their work as a potential way to reduce costs and streamline their operations.

 

2_ Helping companies focus on business development:

This is because they enhance and extend your control over operations and production by allowing you to form a dedicated core group of employees to work and focus only on your company, as opposed to believing that they take away your control of your business.

 

Offshoring and outsourcing actually enables you to grow your operations, by putting you in control of every aspect of every business detail as the sole source of direction, you train your employees and make sure everything is thrown the way you want it which leads to more productivity and feel Accountable to every member of your core group of employees and ensuring that needs are met by selected teams of the highest caliber.

 

3_ Achieving flexibility for companies and expanding business:

 

4_ Reduce risk:

Because they not only provide specialized services for your company, they help you reduce the risks of backlogs, insufficient customer engagement and communication, and similar challenges.

 

5_ allow you to expand your services and offerings and  growing your business, instead of just spending for it.

 

6_ Establishes new markets:

Setting up an offshore presence may enable a company to broaden its customer base to other countries and Enhanced knowledge of overseas markets.

 

7_ many firms outsourcing software development, network operations and other IT services.

 

8_ Control

Many businesses may not want to relinquish control of part of their operations and production to an external party.

Offshoring allows you to have dedicated staff to work for your company only. You provide the direction, train the staff and everything is done the way you want it to, which leads to accountability internal of the business.

 

9_ Business Growth

Offshoring allows you to reduce one of the most expensive parts of your business, the labour costs, Freeing this up will allow you to reinvest funds into your business and give you the opportunity to expand your offerings and service.

 

 

10_  Access to Staff:

outsourcing and offshoring give you access to a young and vast pool of talent, who are highly skilled and university educated.

 

11_ Greater Availability:

Having a different time zone and a workforce ready for 24×7 operation gives you an outstanding opportunity to support your clients when they need it and fulfil their ever-changing needs and This results in a better level of service and a higher level of customer experience with quicker and direct contact to your business and Increasing the competitive edge in your industry.

 

Finally if you want to know How Outsourcing Agency can offer higher quality and cost effective at the same time, stay tuned for the next blog.