Offshoring Myths

OFFSHORING: SETTING RIGHT SOME MISCONCEPTIONS

There has been a steady rise in the offshoring and outsourcing trend among companies all over the world. It is a tried and tested method that allows companies cost savings as well as provides quality work, the two pillars of a growing business. Big and small business ventures alike have been offshoring to various countries across the globe now as per their requirements. It has most certainly helped enterprises grow and reach new heights. Yet, often times when offshore recruitment is mentioned it is received with a stink eye. It is dismissed by people as something it is not because of the various misconceptions surrounding offshoring. It certainly does not help when offshore recruiting is at times confused with outsourcing. So before we even make a headway into this post, let’s sort out this common misunderstanding first. Offshoring and outsourcing are often used interchangeably even though the two are different
concepts. Outsourcing is when you contract a third party for providing you with certain goods and services. Whereas offshoring is relocating some of the services or jobs of the company in a different country. It is an extension of your own company and you do not lose control over those operations, you simply have a different team managing it overseas for you. Your offshore staff still works for you, something that outsourcing does not provide. Now that we have a better understanding of what offshoring is, let us clear up a few misconceptions surrounding it.

1. It is all about saving costs.

This is a very common rhetoric revolving around offshoring. Remote staff overseas is  synonymous to cheap labor and therefore cost savings is the only perceived benefit for most  people. This is not true. While capital saving is certainly a large benefit of offshoring, it is not  always the only reason. Offshore recruitment allows for a company to employ professionals from all over the world, thus increasing their chances of hiring better skilled staff. Sometimes
these employees are far more talented than the ones available locally and that is a huge bonus for the company. Therefore, offshore recruitment helps companies tap into a larger pool talent, thereby improving their work quality.

2. It takes away local jobs.

This has been a topic of debate for a long time now. There are huge cries about how offshoring is taking away jobs from the local people and giving them to people in different countries. It’s probably the biggest reason for the not so good reputation of offshore staffing, and it is simply untrue. Of course, when you break it down to the very basic offshoring is having people from another country working jobs for you in that very country. So the jobs that could have been employed with local workforce are now being worked by outsiders. But most times these jobs or services are the ones that are not intrinsic to the company’s growth. While needed, these services are not a company’s core operation. So when offshored, it allows the company the time as well as the money to focus on important functions which helps it to grow and subsequently expand locally. This expansion in turn generates more jobs to be taken up by the local people. So while it does take away certain jobs from the local workforce, it eventually supplies them with more jobs that might even be better suited to their skillset. Offshoring, thus, provides benefits for the economies of both countries.

3. It only helps big companies.

Offshoring is a method that has been utilized by big enterprises for a long time now. Which is why even now it is believed to be a tool for large scale businesses. On the very contrary, more and more small and medium enterprises have been using offshore staffing to their benefit in the last few years. In fact, it is more vital to them or even for the startups. Offshoring is a way to grab quality while saving on costs, something essential for any small business looking to expand in the future. Offshoring allows for smaller companies to hire more employees with better skills with the same budget, and invest the saved money for their company’s growth. Done correctly, offshore recruitment is a blessing for all kinds of businesses.

4. It provides poor quality of work.

Offshoring the services to a country across the globe technically means relying on someone else to look over the team for you. It leads to believing that the quality of work produced by such a team where one isn’t physically present to monitor themselves will be subpar. But if a company invests in a good offshore recruitment agency for their needs the quality of work need not be effected. With proper screening and recruitment the employees hired are thorough
professionals who understand the demands of your company and the work expected from them. Do not underestimate their qualifications based on their cost. Not only are they skilled at their job, but they are properly managed and monitored systematically ensuring highest efficiency. In no way will your company’s quality take a nosedive if you implement offshore staffing.

5. It is difficult to manage.

A vast amount of distance between your head office and your offshore office is bound to make you think whether offshoring is worth it. It doesn’t help when there are objections around about lack of communication between the two. But we live in a time and age of advanced technology. Day by day there are new innovations being made to aid long distance communication. One only needs to acquaint themselves with the right tools of communication
to not only make setting up a remote staff possible but to also make it as convenient as possible. Instant messenger, emails, video calls, screen sharing etc. make it easy to interact and collaborate with your remote employees. You can arrange daily interactions and ensure that the work is up to the company’s expectations and further communicate all instructions. It might need a little effort on your part to schedule calls at a suitable time for you both, but it is worth
it in the grand scheme of things. The offshore staff is yours to control, the number, the hours, the work, is all up to you, you need only communicate.

So, don’t let the myths about offshoring hold you back from implementing a way of business that has been helping various companies achieve success for a long time now. If it is the right step for your company, you are only one offshore staffing agency away from enjoying all the benefits yourself. With the right agency you need not worry about any of the pitfalls.