Offshore Outsourcing Services – Is Offshore Outsourcing Beneficial to Small Business?

Some small business owners wrongly assume that offshore outsourcing services are for the fortune 500 companies alone. Also, the mere thought of entrusting their business functions to an offshore vendor disturbs small business owners. Yet, small businesses are one of the greatest beneficiaries of outsourcing, especially when it is done for the right reasons and in the right way.

Typically, the small business owners handle virtually every aspect of their business alone. They feel more comfortable to do so, having the notion that nothing would go wrong, when they take complete charge of their business functions. On the contrary, a recent report from US Business Association reveals that most tasks carried out by small business owners (spending quality time to do so) are not usually profit-oriented.

While a small business owner is considering fund-intensity as the requirement for offshore outsourcing services, it is indeed cost-effective to hire an offshore vendor for business functions, especially the functions that are complex in nature. Then, you can refocus on the core activities of your small business.

When Is it Necessary for a Small Business to Outsource?

As a small business owner, your business will keep growing and would thrive to a point when you will suddenly notice how difficult it has become to handle the tasks alone. Topmost in the list of such tasks is customer service. If your business has reached that growth level, it is the right time to seek for external help. Compared to the cost of getting the external help in-country, it is usually cheaper to outsource tasks such as customer service or help desk to an offshore contractor. Thanks to the internet, in a couple of minutes, you can scan through the profiles of top-notch offshore providers and make the perfect selection after further investigations and research.

To clear the doubt that may be in your heart regarding the cost of contracting offshore outsourcing services versus in-country provider, you can interview 5 people in-country and 5 people offshore to compare wages. Subsequently, you can settle for the option that promises the best cost advantage. Going by global analysis, offshore outsourcing option will always win the contest.

Here are some costs you will by-pass by hiring an offshore employee;

  • Monthly wages plus government-imposed health/welfare benefits
  • Office equipment costs
  • Utilities
  • Cost of training and re-training staff
  • Employment insurance
  • …and others

Obviously, a small business is not capable of footing the recurrent bills associated with in-house or in-country staffing. It is far way cheaper to embark on offshore outsourcing services. It helps to maximize cost savings advantage, hence increasing profits significantly. However, profound selection process is necessary for successful outcome with outsource offshoring. We’ve written a couple of useful guides on how to select the right offshore partner.

Get your free copy of FB Miner Lead Generation Software when you get Daven Michaels new book ‘Outsource Smart,  Daven is the CEO of 123Employee, the premiere outsourcing center in the Philippines. Daven is considered to be the foremost outsourcing expert and has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting  http://outsourcesmart.com/outsourcesmart.

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