Offshoring Pros and Cons

14 Dec 2016

There is a particular immediacy to being aware of offshoring pros and cons. No business venture is perfect as there will always be risks and disadvantages that come with adopting new strategies. Offshoring certainly isn’t exempt from this as there are some characteristics to it that people may not find appealing.

While Diversify does champion the process, we also want to be certain that potential clients know what they will be getting with offshoring. Presenting offshoring pros and cons will aid in making what could be a very important and informed decision that could shape your business in 2017. Although it is often closely associated with outsourcing, there are aspects to offshoring that make it a different process.

Offshoring Pros

The advantages that offshoring brings revolve the massive savings that it brings. However, companies that adapt an offshoring strategy are also made aware of how it promotes better office culture and transparency between yourself and your remote team.

offshoring pros
Offshoring Pros

• Access to a vast, talented pool of candidates.

Offshoring to countries like the Philippines means being able to work with some of the best people they have. The BPO industry in the Philippines is particularly strong, which means that many of their talented people can be found.

• Greater transparency as you manage your team members directly.

The biggest difference between offshoring and outsourcing is choosing the right people for the job. Offshoring functions require a very meticulous process that will result in finding very talented staff members you will work with. You will have direct selection and control of who will come on board with you. A good offshoring provider isn’t content with people who are “good enough” and will go the extra mile to help you find those who can help make your business succeed.

• Employees become long term, value adding members of your team.

Outsourcing is often seen as viable for short-term solutions with staff that can change on a whim. While outsourcing puts more importance on the process, offshoring is much more people oriented. By closely working and engaging with your remote team, they are given a chance to show their skills and how they can help your business grow. This results in having dedicated team members that are loyal to you and your business despite not being there locally.

• You won’t lose control of your data or intellectual property.

Your team members will be operating remotely – they’ll be accessing your server to perform their task; this means they are governed by your local IT security settings and cannot do anything outside of these settings. Diversify also has a range of security protocols in place including no phones in the work area, no local saving functionality and the locking down of certain sites in consultation with you.

• More affordable over the long term.

One major outcome that an offshore team can deliver is assisting your business in growing without expanding your overhead and fixed costs. Outsourcing may seem like the cheaper option between the two but in the long run, offshoring gives your business more bang for its buck as you help cultivate staff members instead of constantly rotating between new ones.

Offshoring Cons

Although a beneficial strategy for businesses, offshoring is something that is not for everyone, especially if you are looking for immediate and short term results. Compared to outsourcing, it takes time to implement an offshoring strategy in order to ensure the quality of service.

offshoring cons
Offshoring Cons

• Implementation usually takes longer than with outsourcing.

This is very particular issue when talking about offshoring pros and cons. Because offshoring requires plenty of managerial and direct control from you, implementing it may take some time. After all, offshoring isn’t a “set and forget” process but rather something that will need your full attention and care. Remember that you not only oversee your staff’s management but their development as well. Ultimately, you need to consider if the juice is worth the squeeze – if you’re looking for short-term gains from an offshore program, this strategy might not be for you.

• You need to provide the business process which ideally requires you to have functional and well-documented process and procedures.

If you have specific requests and objectives from your offshore team, it may require additional training. Your business may not have this luxury or may not want to go through with the process of documenting and refining processes and procedures as it can be arduous. Businesses that need more short term and immediate results may refrain from considering offshoring. It is important to note that undertaking a full assessment of existing processes and procedures can deliver many tangible benefits to your business.

• Service quality remains at the clients’ risk.

When talking about offshoring pros and cons, it often boils down to what clients feel is comfortable for them. It’s understandable that people feel apprehensive about working with an offshore team because of their distance. Most feel comfortable working with local staff as they are easier to reach and the quality of work can be quickly assured. On the other hand, if you believe in the skills of the offshore team that you selected, this may not be a considered a risk.

Overall, offshoring will depend on what objectives you are looking to accomplish. Understanding offshoring pros and cons will then help you know what you need to consider. It may not be what your business needs if you want more immediate results that don’t require your full attention. However, if you see yourself wanting to collaborate with a team that you will develop to function like a well-oiled machine, then offshoring is something to consider.

Interested in getting started? You can drop us a line today to see if you are ready for to take on offshoring.