Today, we live in a highly connected and virtually borderless world. Companies are no longer restricted by geographical boundaries. They can establish subsidiaries anywhere around the globe. Not only that, they can also transfer resources including machinery, technology, knowledge, and even humans. For quite a few years, businesses have started using outsourcing as a measure to save costs and increase efficiency.
Outsourcing refers to contracting out non-core tasks and processes of a company to third parties that may be within or outside the home country. When outsourcing is done abroad, it is known as offshore outsourcing. Another concept called ‘offshore staffing‘ is becoming popular in the business world. Although it is often confused with outsourcing, offshore staffing is a little different.
No matter how big an organisation is, it requires talented and skilled employees at an affordable rate. There are several ways in which you can find the perfect employees for your company. You may publish advertisements, call for referrals, hire consultants and head hunters. However, such a process of recruitment, selecting, and interviewing employees can prove to be very expensive and time-consuming. Once hired, you will also have to invest considerable resources and hours in training and managing them.
Well, yes! Offshore staffing is a process through which companies can hire and build a team of provisional workers overseas. In other words, organisations engage in offshore hiring when they build a development centre abroad and hire a team of employees from the same country. There are essentially two ways of hiring remote staff. You can either do it yourself or approach an offshore staffing agency. These agencies offer offshore staffing solutions to various kinds of businesses irrespective of their size. Some common services that are outsourced offshore are creative tasks, data processing, IT software and development, customer care services, accounting, etc.
Since offshoring helps in freeing up internal resources such as infrastructure, you can use the released assets for expanding your business. Offshore hiring also reduces the chances of losing potential clients because of heavy workload as the work is distributed among many across time zones. While offshore hiring supports business expansion, the opposite is also true. When your business grows across, you will need access to more professionals to control the demand and manage the piling work.
Offshore hiring reduces costs, releases strategic resources, and helps businesses in establishing a global presence. It also enables them in getting access to a highly talented pool of individuals and work for longer durations. Companies not only earn high returns due to low labour costs but also the cost of technologies is lower in the offshore countries. All these factors result in low cost of production, higher productivity, and thus, higher profitability.
Just like the two sides of a coin, offshore staffing comes with its own set of challenges as well.
Differences in languages and cultural practices of the people belonging to the home country and the host country can lead to communication barriers. Most companies that indulge in offshore hiring use English as the primary language for communication. The hired remote workers might not have the same level of understanding of the language as them. A distinct accent, varied meanings of the same words, misinterpretations, and other semantic factors can cause trouble in effective communication.
Operating in countries with different time zones definitely helps your business to run 24/7. But at the same time, it also poses various challenges in properly managing and communicating with the remote workers. There can be communication gaps which can lead to delayed decision making. In tasks that have deadlines and are time-sensitive, delayed communication can cause further problems.
For quite a long time, off-shoring, companies face ethical concerns. They are often blamed for increasing unemployment in their own countries or exploiting cheap labour overseas. When organisations decide to hire remote staff to carry out some of their present operations, it results in heavy layoffs and increases job insecurity among the present employees. Such instances can affect the public image of the companies.
Talk to us Today Asia is the epicentre of global economic growth due to offshoring staff agencies. Alongside the established