When you’re in business, you can’t expect that all of the workers within your premises have all the skills and expertise that you needed. But let us just say that there is indeed someone among your workers who is able to do the needed task. That person do well in that area, but is not good enough to satisfy all of your business needs. So what do you do? Will you just accept whatever work is done?Or will you explore other options to tap on a bigger team that will meet your set criteria?
Well, the reality is, you always have a choice.
The choice that I’m talking about in solving problems like this is to turn to outsourcing. From the word itself, outsourcing simply means going “out” to find the “source” you need. With it, you’ll be able to scout, choose and handpick those individuals who specialize in the task that you needed to be done in a way that you’ll be assured of having satisfactory results without the need to pay for training.
Along with the trend, a lot of businesses now turn to outsourcing whenever the need arises. And as observed, most of them do their outsourcing offshore.
Now, why is it really that most of them choose to outsource overseas rather than do it locally? Well to enlighten you about the good thing with outsourcing overseas, here are its advantages.
- Outsourcing overseas is less expensive.
In a business, price is always a major concern. And the remedy to it is to outsource overseas. This is because wages in many countries where outsourcing is common are lower compared to the wages you are paying upon your workers. In the case of manufacturing, raw materials often cost less in certain countries. And since labor and raw material is one of the primary costs in most industries, doing it can mean that you’ll be able to save a hefty amount savings.
- Outsourcing overseas promises quality of service.
Since you’re company is the outsourcer’s customer, most of the workers will exhibit a can-do attitude improving the speed of your business needs. At the same time, you’re improving the quality of your staff compared to those within your premises that slacks off most of the time.
- Outsourcing overseas brings a good environment for business.
Most countries where outsourcing is common offer a more business-friendly regulatory environment. So you’ll be assured that everything that is happening is purely business and there’s no such thing as attitude-driven problems. Also, being a business-friendly environment, corporate taxes and tax shelters are lower which brings financial incentives for the businesses in your country and even encourage them to invest on the country you are outsourcing.
- Outsourcing promotes more capital funds.
As mentioned from the disadvantages above, outsourcing overseas really enables you to control and save money easily. And with this, it reduces the need to invest capital in non-core business functions, and put that capital to invest in other means to gain profit for the business.
- Outsourcing overseas needs low regulatory cost.
Social security, health insurances, unemployment insurance and a lot more regulatory costs imposed by the government make employing overseas workers favorable since none of these fees must be paid. So there will be less hassle when you make your payrolls.
Outsourcing overseas gives you the ability to downsize at will.
One of the good things that benefits employer with outsourcing overseas is the fact that no damaging lawsuits can be filed against them. As observed, one of the dilemmas of these employers are the rising employee lawsuits since employees are becoming more educated about the employment laws in their countries. With it, downsizing the local employees will really be hard. But when we talk about those workers overseas, the law doesn’t really affect them at all. So upsizing and downsizing at will is in your hands.
Outsourcing overseas gives you contractual certainty.
Dealing with your employees won’t really be a problem at this one since contracts entered into the company are from the hands of the outsourced providers. To that, disciplining and firing ineffective employees for their negligence, poor performance or failure to finish a job is the job of the outsourced company. In addition to that, they are required to compensate for that employee.
And that’s really a handful disadvantage for outsourcing overseas. This concept is really favorable for employers rather than employees. So if you have plans to do outsourcing, better do it overseas.