What is Offshore Outsourcing: Definition and Benefits
Nowadays, it’s as if the world has become one big village. Without much hassle, you can communicate and work with people from around the globe. Some say it’s a good thing. Others condemn it. But whether we like it or not, offshore outsourcing is here to stay. Should you be considering it for your business? We look at the topic – what it is, what it entails, and why so many companies are adopting offshore outsourcing as part of their business model.
What is Offshore Outsourcing?
Offshore outsourcing can be defined as the system of collaborating with an external organization and assigning that organization to carry out some of your business roles. Usually, the product or the service which has been outsourced would not be sold in the offshoring location; it would only be marketed in the outsourcer’s country. Offshore outsourcing gives organizations access to high-quality services at lower operating costs.
Categories in Offshore Outsourcing
There are basically three main categories in offshore outsourcing
1. Business Process Outsourcing (BPO)
2. Infrastructure and Technology Outsourcing
3. Software Outsourcing.
Organizations usually outsource parts of its process, which is important, but not vital for the organization’s stand. Processes like customer support, payroll processing are outsourced to save on costs. BPOs can be further sub-divided. Back office outsourcing is outsourcing the organization’s internal roles, while front office outsourcing is outsourcing the organization’s call center and customer support services. Call centers, help desks, finance, and accounting services for the organization’s internal operations are all examples of offshore outsourcing.
Infrastructure and technology outsourcing services generally include services that support an organization, such as, networking, technology services, and support, etc. Offshore software development services include software development services. India, China, and Russia are the three leaders offering software development services. India is one country that can handle huge projects and deliver them in time.
Benefits of Offshore Outsourcing
Reduce Capital Costs
Every department and every employee in your organization implies a capital cost. You need facilities, equipment, and of course, the staff that occupies that space and uses that equipment. Outsourcing makes the provision of workspace, equipment, and human capital somebody else’s problem.
When an activity falls outside your core business, you may find yourself or your employees trying to multitask. For example, a manager becomes a marketer but just what does he or she know about marketing? You and your employee face a learning curve, and learning curves are inefficient.
Outsourcing gets you access to expertise – and since the task you pass on to them is the core business of the organizations to which you outsource, they’re always on top of the game. There’s no wait time or down-prioritizing. They want to get the job done even more than you do!
Only Do What You Do Best
If you prefer, we can call this “focusing on your core business,” but it amounts to the same thing. Let’s suppose you’re a manufacturer of ball-bearings. Do you really want to get distracted by IT management? All you want is its benefits! The obvious solution is to outsource.
Be More Competitive
Big companies can afford to have dedicated departments for things like accounting, marketing, HR, and IT. Can yours? But if you outsource, you have all the benefits of a dedicated department – without the overheads.
As soon as you rely on a technology, there’s a risk that it might become outdated. And in today’s world, that can happen really fast. Meanwhile, you’re continuing with business as usual, and the first time you know there’s a risk is when it bites! But if you outsource to a company that specializes in a technology, it will be very aware of developments and changes, and it will know how to keep you ahead of the curve. If it doesn’t, it risks going out of business completely!
Here are the complete list of the services that we outsource:
At Hir Infotech, we know that every dollar you spend on your business is an investment, and when you don’t get a return on that investment, it’s money down the drain. To ensure that we’re the right business with you before you spend a single dollar, and to make working with us as easy as possible, we offer free quotes for your project.