When Should a Organization Offshore?

At some point in the lifespan of any company when a organization owner must make a critical decision about how to develop further. Most companies competing in this global economy must eventually choose whether or not to use offshoring solutions if they want to continue to grow or scale.

It's a tough decision during these uncertain economic times. With a recession on the horizon, the strategic implementation of offshoring solutions to lower costs for processes could mean the difference between survival and bankruptcy for many businesses.


 

The Distinction Between Offshoring and Outsourcing

Due to frequent confusion, let's first make a distinction between offshoring and outsourcing. When a business hires a specialized outsider to carry out a phase of its business process, this is known as outsourcing. This typically means that the staff of the third party is not directly managed and supervised. On the other hand, offshore refers to the practice of a company moving or sending internal jobs abroad. This shows that they continue to control and monitor the staff and the way the operation is carried out.

When Should You Not Offshore??

On paper, expanding through outsourcing appears to have several advantages. To properly comprehend the ideal offshoring timing, though, some complexity is required. Let's examine several situations where it isn't a good idea.

You Need Frequent Communication with Target Customers

You need to be in close contact with your clients whenever you're a startup that's just getting started and still developing your product. As you develop and customize your product to meet the needs of your customers, outsourcing customer care to a third-party source will have more drawbacks than benefits.

Offshoring Will Not Solve All Your Problems

It's best to view offshoring as an option when you've finally established your business on stable foundations instead of being a band-aid solution for rushed and unplanned projects.   

 It can be hard to decide when it is most appropriate to be deployed, but one thing is for sure, it requires a lot of consideration and number-crunching to realize its full benefits. Most companies mistakenly join the frenzied demand to offshore without mapping out and verifying if it's really needed.  

But when it does make complete sense, the benefits of offshoring are astounding and can propel your business into the global market.  

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