What Is An Offshoring Solution?

An offshoring solution, simply put, is the relocation of a company's business process to another country with more favorable conditions to reduce operation costs.    

Business functions sent offshore vary from simple IT solutions to increasingly more complex knowledge-based business processes, including product development. 

Offshoring is often confused with outsourcing. The two strategies are similar in that businesses use services from a foreign location to optimize their processes. However, the two do have a stark difference. While offshoring is when a company moves its process to another country, outsourcing is when a company contracts a service provider to handle particular tasks and functions for its business.


In offshoring, a company retains its control over the process. However, in an outsourcing agreement, process methods and quality control are primarily left in the hands of the provider.

Consider These Benefits


So, what benefits does a firm stand to earn if it decides that outsourcing is the next stage in its growth strategy?

Reduced Labor and Operating Cost

The first and most evident advantage of employing an offshore solution is the potential savings in operating costs. With the high cost of living in most places in America, many high-skilled occupations fetch very competitive pay.

Global Talent Recruitment

Countries like the Philippines and India have a high demographic of young, educated, English-speaking professionals with comprehensive skills and knowledge in various fields, ranging from accounting to software development. Partnering with other companies to facilitate your offshore setup provides you access to this expansive talent pool.   

Some companies may even specialize in specific industries, meaning you can quickly assemble an excellent team for any business process you need. In comparison, your in-house recruitment team may have more difficulties and spend more resources sourcing and processing just one candidate.


And Disadvantages to Be Wary Of

What common obstacles should they be wary of when designing their strategy?


When To Offshore?

Implementing an offshore plan necessitates a detailed examination of a company's existing condition. The fact is that most corporations that have established immediate outsourcing operations, even in favorable nations like India or the Philippines, have failed.

The Best Countries for Offshoring

With all of the pros and benefits highlighted, you're probably wondering which nation is ideal for your outsourcing plan.