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Best Practices offshore
Beyond Cost Savings: The Hidden Benefits of Offshore Staffing Solutions
Offshore staffing solutions are steadily becoming de rigueur for companies across the spectrum, particularly across the technology or IT and ITeS sectors. Offshore software development and other remote staffing solutions are helping companies reap the benefits of lower costs and sustainability.
These models are enabling more efficient operations through hiring talented global personnel with considerably lower labor costs, while maintaining quality output simultaneously. Yet, there are several hidden advantages of offshore staffing solutions that businesses also get. Here’s taking a look at the same in this article.
A Brief Glimpse of Offshore Staffing
Offshore staffing or offshoring usually covers these key aspects:
- It means running a part of the business and its operations outside the home country of the parent entity.
- Offshoring is not the same as outsourcing; it means that you are always in charge of management and execution, while simply shifting the operations base somewhere else.
- Remote staffing thus equates to building a team overseas and this can be done by in-house recruitment teams at the parent entity.
What Lies Beyond Cost Savings?
Offshore staffing solutions can help companies get access to a huge pool of global talent. A report in 2023 by Gartner indicates how the global IT sourcing market will rise significantly in future years, with more demand for skilled personnel. Here are some of the key benefits arising from offshore staffing that go beyond only cost savings.
- 24-7 Operations for Higher Productivity- One of the biggest benefits of offshore staffing solutions is that companies can leverage the capabilities of teams throughout multiple time zones, while maintaining their operations on a 24-7 basis alongside. This naturally enhances productivity considerably, thereby enabling uninterrupted service and support for customers in some cases as well.
- Cost Efficiency- Cost savings are different from the concept of cost efficiency. When you recruit offshore staff yourself, you will naturally be able to hire more competent and skilled personnel through a process that is tailored to your business requirements. This means better cost efficiency in the long run in terms of using your staffing and recruitment budge, while getting higher quality in turn. This is especially useful to smaller businesses with tighter budgets and a desire to maximize value.
- Access to a Bigger and Diverse Pool of Talent- Several companies are already tackling the shortage of suitably-skilled talent. This can be offset by them to a large extent with offshore staffing solutions, enabling access to the best and most diverse global talent, irrespective of whether it is available in your region/area or not.
- Lowering Risks- A survey by Deloitte in 2023 covered Global Shared Service and Outsourcing and talked of how Global Business Services (GBS) entities had risk reduction as one of their top-five goals that were achieved. This is a major reason behind investments in remote staffing solutions by several businesses in recent years. Offshore staffing is a much better process to obtain managerial and leadership control over global teams as compared to outsourcing. This is because offshoring covers the transfer of full segments of operations overseas, necessitating the establishment of operational procedures and work codes for teams abroad.
- Higher Operational Efficiency- Smarter scheduling and timing systems can enable higher operational efficiencies with offshore staffing solutions. Remote workers from other regions can smoothly function and supplement local teams when they are not working. This actually drives higher operational efficiencies in the long run.
- Scaling up Business Value- Employee disengagement may ultimately lead to lower business value. Based on a report by McKinsey and Company last year, the lack of work that is meaningful is one of the key employee disengagement drivers. If the core team of employees does not feel meaningfully engaged as per their skill-sets and competencies, they can disengage from the company, thereby lowering overall business value.
One of the advantages of offshore staffing solutions is easier delegation of tasks outside the core competencies/skill-sets of teams to remote staff members. The core team can thus shift focus to tasks with higher value, while offshore members can lower their workloads, including duties that they do not find meaningful. This will lower the overall business attrition rate locally, thereby taking the company forward in the near future.
Concluding Thoughts
Offshore staffing solutions not only help businesses leverage all these advantages, but also aid in the development of custom teams away from the core operational base. It enables higher control over work quality and companies can readily invest in employee skill development alongside.
Hence, as can be seen, offshore staffing is not just about reducing costs, but also a lot about scaling up business value and overall efficiencies in turn. Taking all these factors into consideration, it can well be a good solution to your talent sourcing and recruitment needs.
