Addressing Common Offshoring Myths

16 May 2017

Like any business strategy, offshoring is certainly not for everyone. Your objectives will determine whether or not it is something to consider. Due to its nature however, a number of offshoring myths have arisen in the last several years.

The concept of offshoring can seem intimidating when you look at it from the outside. There are plenty of factors and extra responsibilities you must take on for it to be successful. Without proper insight into offshoring, several issues can arise that overshadow how beneficial it is for your business. It also becomes easier to discredit offshoring if you have a bad experience with it because of your provider.

Local jobs will be taken away

This is perhaps the biggest offshoring myth that needs to be addressed. Offshoring is about sending functions to a different team to accomplish. As it means working with a team overseas, offshoring is criticized for taking away opportunities meant for local employees.

Indeed, offshoring does mean sending jobs elsewhere. However, it does not also mean your local team is negatively impacted. With process-driven tasks being sent offshore, your local team can focus on more high-value tasks they can prioritise. Local jobs are not taken away but allow for the creation of new opportunities.

Offshoring is only good for minor functions

Often, the first roles associated with offshoring would be call centre agents or tech support roles. Some companies rely on offshore service providers access to cheap labour in order to meet their needs. This has given offshoring a poor reputation of favoring the quantity workers over the quality of work.

Plenty of offshoring providers, including Diversify, shift their focus away from being just another call centre. We looked at what The Philippines had to offer and saw a deep talent pool of potential team members. With many employees holding specialized degrees and excellent English literacy, offshoring is now focused on filling more high-quality roles.

There’s just no time to do it

One of the things companies should know about offshoring is that it cannot implemented right away. To have a successful roll-out, companies will need to invest time into planning to address potential issues from all aspects. When presented with this reality, some companies believe they may not have the time or are looking for more immediate results.

Yes, ensuring your offshoring experience is a seamless one can be a daunting process. That’s why it is important to partner with a provider that is experienced in managing offshore teams. A good provider knows the importance of your business objectives and finding the right people for key roles. They also provide ongoing support to facilitate a better working relationship with your local team.

It is not something my business can implement

Historically, offshoring was once exclusive to top tier companies. This has made other businesses wary of considering it a viable strategy for their growth. Believing their current circumstances will not benefit from offshoring, it is immediately overlooked.

Whether you are a medium, large or listed company, offshoring allows you to expand without the massive overhead. Your offshore team could help your business invest in new projects that were once impossible due to budget restraints. You are able to reduce costs between 75% and 80% while still operating on a higher level to your competitors.

A team in another country will be hard to monitor

Over the years, numerous horror stories about offshoring arose. The distance between a local office and an offshore team is seen as the biggest hurdle to establish proper communication and trust. Some companies believe that constantly supervising a team overseas is an impossible task. Additionally, its benefits are often lumped together with what outsourcing can do for a business. This is an ongoing myth that is simply not true.

While many similarities are present, there are significant differences between offshoring and outsourcing. The most notable being that offshoring offers complete transparency compared to outsourcing. Because companies need to be invested in the recruitment process of their team members, they are given full control over them. The result is an offshore team that is highly motivated and widely accepted by your company as an integral part of continued growth.