There are times when you just need to call for outside help. Your business could be going through a plethora of challenges and you and your employees could be struggling to keep up with the workload. Luckily, there is a lot you can do about it.
Outsourcing – Bringing the Outside Help You Need
When it comes to hiring help for your business, many companies would turn to the tried and tested formula or hiring affordable labor in other countries to get their work done. Tasks like customer services, accounts receivables and virtual assistance are second-party workers or companies. This is known as outsourcing and quite honestly, has served the business world well for the past few years.
Offshoring – Going One Step Further to Get Help
Now comes another solution that might work even better for companies around the world, offshoring. If a company has a series of goals it needs to achieve, there are countless platforms that will facilitate you with an off-site workforce, often outside of the company’s country or original location. This system allows for a cost-effective solution to hiring issues. You can access a database of skilled workers who will do your work for you for half the price of a local hire.
What is the Difference between Outsourcing and Offshoring
But do not outsourcing and offshoring sound eerily like each other? How do you decide which one is for you? Here is a small breakdown for the difference between outsourcing and offshoring. While both systems allow you to hire outside help for your business, the location is the main differentiating factor.
If you outsource your job to another entity, it could very well exist within your own company, in another department as well. Offshoring is different from outsourcing because if you opt for offshoring, you are hiring someone outside your company’s confines to get the job done.
How to Choose Between Outsourcing and Offshoring
This raises the question – which staffing solution suits your business the best? That is easily remedied as well. You need to first ask yourself what kind of challenges you are facing in your business.
If you would like to lessen the load of your current in-house employees, outsourcing some assistance work, or managerial duties like office administration, talent recruitment, and payroll management to another entity outside the company allow your workers to concentrate on their
Primary duties.
If you are running a large operation and the issue is a raked-up payroll, it is advisable that you hire affordable, skilled professionals offshore, who will provide you with the same quality of work but will cost you far less.
Are There Downsides to Choosing Outsourcing versus Offshoring
Quite honestly, this is a subjective matter. When choosing to opt for one or the other, there are multiple factors to consider. For starters, your business needs, and the core activities you need to outsource will determine whether it is a good option for you or not. If you want your workers to focus on core competencies, outsourcing non-core activities can help maintain their productivity. But that also runs the risk of relinquishing control over how the work gets done. Offshoring some core responsibilities to an entirely foreign entity can pose similar risks, but also ensures that your work is in the capable hands of a worldly and diverse workforce. You are also able to avail uninterrupted access to operations due to the time zone differences with offshore hiring, which means that you get more out of the deal than you lose.
Put your Business First – Choosing between Offshoring or Outsourcing
What is the difference between offshoring and outsourcing; now you know. Your core concern should be what is best for your business. If your company values its central workforce and wishes to keep a balance between what that team can accomplish to deliver quality, adding a helping hand by hiring remotely can only be good for you.
But you must be cautious of what you can achieve by opting for remote staffing services. There are multiple factors to consider and assess before you do so.
- Will remote staffing help you save money in reduced labor costs?
- Is there something you can do to facilitate the core workforce before choosing to hire remotely?
- If not, does your company possess the resources to manage outside help smoothly?
- Can your business benefit from expanding into a more global market in offshore hiring?
- Will the onboarding of a new workforce impact the scalability of your business?
If as a business owner you know the answer to these key points, your company will already benefit from outsourcing some operations to another entity. Similarly, if your key business operations are running smoothly, you can effectively manage a team of workers offshore as well.
It is worth noting that due to the favorable time zone differences and diversified workforce capabilities, you will fare better hiring offshore entities and personnel to take over some of your business operations and. It seems that in the fight towards which model comes on top, offshore hiring is more conducive to your business needs
