3 Ways Offshore Outsourcing Can Turn Around a Struggling Business
The first five years of a new company are the most crucial. Many companies fail during that period and many have succeeded beyond expectations at the same time. For those struggling to stay afloat, offshore outsourcing provides a low-cost option to hire quality workers and expand their market reach without investing a lot of money. Ask a company that outsources how the decision changed their business and they’ll tell you about any or all of these three things.
#1 In business, employees are the second most important people in your business, next to your customers.
What happens if you’ve been looking for great people to hire but found few of them exist in your community? Do you look for people from the next town or outside of your state?
It’s a good idea if you have the money to pay for their relocation costs. But, for those with limited resources, especially on the financial side, the best recourse is to look for talent elsewhere, unhindered by geographical, language and cultural barriers.
Offshore outsourcing lets you hire the most qualified professionals and work with them through the internet, the technological wonder that made the world smaller and less vague. This technology has advanced by leaps and bounds since its inception in the Eighties and unstoppable growth in the Nineties. It has brought together people from different backgrounds but with the same mindset and helped them change the world.
Because most outsourcing vendors provide in-house recruitment services, you don’t have to go through the hoops of checking resumes, testing, and interviewing candidates repeatedly.
The quality of the labor pool available in other countries is on par or even better when it comes to STEM courses. Many companies in Silicon Valley were able to expand and become household names because of skilled workers from other countries.
Sad to say, but the current crop of tech workers in the United States cannot meet the demand for additional labor. Manufacturing and agricultural businesses may be able to automate, but AI that can build new software or apps and keep the technology in tip-top shape is still not feasible.
Plus, AI lacks the creativity and insight to innovate and resolve problems that affect end-users. Only humans can do that.
#2 The cost-cutting benefits of outsourcing cannot be denied and it should not be stopped.
The rising costs of doing business in the United States or in other highly developed countries are often prohibitive rather than encouraging for many entrepreneurs. New businesses will need infusions of capital more than once in their early stages of development.
If you have a small business that’s fairly new to your respective industry, then you already knew how tight the margins were and how difficult it would be for you to grow without sacrificing the non-essential parts of your business.
Outsourcing lets you add more people, be more productive as a result, without investing in new equipment and additional office space. Another concern by young businesses is their compliance with labor code and regulations.
The labor laws in countries like the Philippines cover the basics, such as sick and vacation leaves as well as bonuses and holiday pay, but none of the additional taxes and other costs related to hiring new staff in the United States.
If you’re thinking about financing options other than outsourcing, a bank loan from the government or a bank you can trust is a good idea. But, this only works out well for businesses that have collateral to offer. If you have none, then outsourcing is a viable option for you to save money without putting your business in jeopardy.
#3 If you’re thinking about small business outsourcing, then you’ll soon understand that it’s not purely a business transaction.
You may not be used to thinking about outsourcing as global collaboration. But, it’s one of the things about outsourcing that you’ll discover soon enough and you’ll be glad to have on your side.
Running a business is tough, especially when you have insufficient people and resources. That’s where a partnership with an outsourcing provider becomes mutually beneficial and truly engaging. Your vendor or provider has expertise that you can learn from and modify to fit your needs.
Offshore outsourcing is not a simple buy-and-sell transaction. It’s not a one-time deal. It’s a relationship in the context of international trading where the people you hire through your service provider become an extension of your office staff. If you think about it, outsourcing helps you become a truly global business with a diverse workforce.
Outsourcing is NOT for Every Struggling Business
Let’s clarify this before it gets misunderstood. Outsourcing is a good option for certain businesses whose problems include lack of qualified human resources and limited resources. Businesses that struggle in keeping afloat because of insurmountable debt or due to mismanagement will likely fail even with or without outsourcing’s help. So, before starting with outsourcing consider the underlying reasons why your business may be struggling.