How Offshoring Keeps Businesses Competitive

26 Aug 2021

One of the ways businesses stay competitive is through adaptation. Those that hesitate to innovate are often left behind. On the other side, companies that stay with or keep up with trends are bound to be more successful. An offshoring model is one such approach that businesses are adapting. With more focus on remote work this past year, offshoring has become a natural fit for any industry.  Because of this, offshoring keeps businesses competitive by putting them ahead of the curve.

But how does offshoring keep competitiveness? Offshoring has brought several advantages to businesses of all sizes for years. Whether scaling down costs or giving access to a skilled workforce, companies are now seeing how an offshore strategy helps them meet their quality standards.

Reduced Costs

Companies initially get into offshoring because of the reduced costs it brings. And for a good reason. By offshoring particular back office functions, resources and costs are less expensive by 70%. That’s because offshore teams often have the same level of competency and talent as local teams would, but at a fraction of the price. Over the past year, businesses saw just how unpredictable and volatile the global economy can be. Many saw how difficult it was to maintain local costs and operations before looking at how a remote workforce could help them.

The costs of infrastructure and resources are also lower in developing countries like the Philippines, where several companies have set up shop in. The right offshoring provider also takes care of their employee benefits which are mandated by their country’s government. With less overhead costs, businesses can focus on core competencies, and create more opportunities for their onshore counterparts. 

Productivity and Quality of Work

As noted above, the offshoring of back-office tasks can help a company thrive. However, they also should not choose the first provider they see right away and think they’ll reap these benefits. Remember that the quality of offshore teams vary from each country. Your business goals and objectives should align with a particular country that specializes in what you need. For instance, businesses looking to develop their sales or customer service support will find the Philippines an ideal location. The talent the Filipino workforce brings is irreplaceable. Companies should effectively use them to achieve their long-term goals. Likewise, countries like China are more known for their manufacturing prowess and are a good choice for companies that need this.

A multi-talented Filipino workforce is invaluable to any offshoring strategy.

More often than not, companies want to have an efficient process flow in order to enhance and develop their products and services. Thanks to current technologies, companies can now fully oversee their offshore team and effectively ensure their quality of work. 


Offshoring keeps businesses competitive by providing scalability. As companies grow, so do their different fixed costs. When you also consider elements like staff training and onboarding on top of key infrastructure costs, it can seem like a challenge to keep things afloat. When companies work with offshore teams, they are effectively establishing themselves in different parts of the world. This means companies can continue to scale their business without disrupting the services they provide.

The right offshore provider can handle these scaled back, daily operational responsibilities at a fraction of the cost. As noted earlier, doing so allows companies to focus on core functions and opportunities while saving time and money.

Access to a skilled workforce

Let’s flip the script for a little bit. One of the biggest criticisms leveled at offshoring is how it takes away local job opportunities. Indeed, offshoring has allowed companies to work with highly qualified teams who are motivated to take on responsibilities often passed over locally. However, as this past year has shown, skill shortage or lack of qualified staff is an ongoing problem regardless of the industry and business size.

Collaborating with a skilled workforce not only means reduced costs. Doing so leads to better customer satisfaction, which may expand audiences and increase profitability. All this is done in a very flexible manner, since offshoring makes the company’s organization more adaptable and versatile thanks to the input of staff hailing from other economic and cultural environments.

Staying Competitive

As noted at the start, offshoring keeps businesses competitive through adaptability. This is thanks in part to the long-term investment companies put into working with offshore teams. As a means to achieve growth and profit, offshoring is a proven approach that keeps businesses competitive. Amidst a constantly changing business landscape, companies must always be ready to meet customer demands and needs. Those that are able to sustain themselves with the right offshoring provider find greater success in the market.