Manpower offshoring is one of the leading ways to scale a business in 2024. And it can help save you hundreds of dollars each month while doing so.
But first, what is manpower offshoring? It is an act of using outside agencies, ideally located in a different country, to hire workers for a short project or a long-term role. It is commonly used interchangeably with manpower outsourcing but there’s a subtle difference. Manpower offshoring specifically emphasizes the geographic location of the external agency, implying that the hired workers are situated in a different country. On the other hand, outsourcing, while sharing similarities, is a broader concept encompassing the delegation of tasks or services to an external party, regardless of their location.
Manpower offshoring is commonly employed in situations where an organization lacks the manpower or resources to undertake a project, or where hiring new staff would incur excessive costs.
The notion of offshoring services sprang to prominence in the latter half of the 20th century as firms were able to interact with service providers across borders with ease, because of technological and communication advancements. Initially, offshoring jobs were offered by big businesses looking to cut expenses by utilizing lower labor and operating costs in other nations. Today, nevertheless, small and medium-sized businesses (SMEs) are also using this approach.
India, renowned for its skilled labor and cost-effectiveness, emerged as a top choice for offshore business services in a 2021 survey.
Duke University’s Center for International Business Education and Research found that 63% of Fortune 500 companies achieved over 30% annual savings through offshoring.
Governments in the U.S. and Europe actively promote offshore outsourcing through incentives like tax holidays, discounted facilities, and training subsidies.
What are the benefits of offshoring?
There are several benefits of offshoring but we have highlighted a few that are most beneficial for SMBs:
- Increased Accessibility: Offshoring allows businesses to provide round-the-clock customer service in their original time zone, enhancing customer accessibility. While achieving this level of availability might be cost-prohibitive in the company’s home time zone, offshoring ensures that assistance is always available, especially when IT support experts are located in different time zones.
- Flexible, On-Demand Services: An offshore team offers a more flexible range of services compared to many small business owners. For example, offshore teams can handle various services, including cash management practices, accounting, bookkeeping, human resources, payroll processing, corporate upkeep, investment management, creative services like graphic or web design, promotion, virtual assistants for tasks like travel arrangements, and customer support.
- Lower Labor Expenses: Businesses can save money on tasks that require a high technical skill or are labor-intensive such as coding, information technology development, manufacturing, and customer service by leveraging the cost advantages of offshore locations. Beyond the cost savings, there may also be a higher demand for workers in these roles in offshore locations.
- Effective Scaling: Scaling a small business effectively is one of the main issues that small businesses face. What if you unexpectedly require additional customer service employees? What if the employee is only required for a portion of the year? Offshoring offers a scalable way to deal with varying demands and workloads. By using a remote workforce, businesses can quickly scale up or down and remain flexible in their response to market dynamics without having to immediately expand physically. Employees from abroad are frequently more adaptable. Using an offshoring provider, you can hire employees quickly and simply. You can downsize effectively and swiftly if business conditions change. Whether you need a virtual assistant or to hire for the busy holiday season, you can hire affordably internationally.
- Reduced Tax Liabilities: The goal of encouraging businesses to set up operations and recruit local staff is a common strategy in nations where offshore labor is common. This might help their local economy, which would benefit the nation and its people. Certain nations may enact tax legislation that benefits foreign businesses that set up operations there to entice businesses offshore.
Finding the best countries to hire from
Offshore development centers are becoming a popular option for businesses in the USA, UK, and Europe due to the rising popularity of remote operations in Western nations. The five best countries to hire from are:
- India
- China
- Poland
- Philippines
- Ukraine
What are the benefits of hiring a team offshore?
- Capitalize on Global Talent: Offshore teams provide access to a diverse talent pool, giving companies a competitive advantage in hiring skilled professionals.
- Decreased Overhead Expenses: Offshore teams contribute to cost reduction by eliminating overheads like office space, supplies, and benefits associated with an in-house team.
- Quick Turnaround Times: Hiring offshore developers ensures quick response to immediate needs, maintaining project goals and deadlines without the delay of hiring permanent staff.
- Specialized Technology: Offshore developers bring specialized skills and expertise, enabling businesses to benefit from contextual knowledge in specific areas.
- Immediate Increase in Bandwidth: Offshore developers can quickly supplement existing teams, addressing immediate needs and preventing potential losses due to delayed expansions.
One of the most common questions with offshoring is what roles can be outsourced internationally? While almost all tasks can be outsourced, the most common services that are often offshored are customer support, IT services, human resources, payroll management, accountants, tax preparers, executive assistants, programmers, data entry clerks, web designers, social media managers, marketing specialist, writers, proofreading, medical transcriptionist, legal counsel, lead generation specialist, technical drafter, or event manager.
Which businesses should opt for it?
Offshoring manpower is a versatile strategy that works well for a variety of small and medium-sized businesses (SMBs), including growing SMBs, startups, agencies looking to cut costs, and agencies lacking specialized skills. It is an essential tool for small and medium-sized businesses, offering cost-effectiveness, ease of access to knowledge, scalability, and the liberty to utilize skills. It’s important to keep in mind that strategic outsourcing could be a driving force behind your SMB’s growth as you follow these steps. There’s a chance to reach your full potential, fight successfully, and leverage the resources to help your company grow steadily on the cutting edge of the competitive business environment.
How do I choose the right manpower outsourcing company?
- Identify Your Needs: Clearly define the tasks you intend to outsource.
- Evaluate Knowledge and Experience: Assess the agency’s track record and expertise in the specific field you are looking to hire in.
- Transparency and Trust: Choose a company that prioritizes open communication and provides transparent pricing.
- Overcoming Time Zone Differences: Consider time zone compatibility for seamless communication and collaboration.
- Technologies That Count: Ensure the agency follows robust data security protocols and adheres to relevant regulations.
- Finding the Correct Balance in Cost Considerations: Balance cost considerations with the agency’s experience and dedication to your project.
How GYS can help hire manpower compliantly from India for SMBs?
For small and medium-sized businesses (SMBs), GYS is a one-stop solution for the benefits of manpower outsourcing. It recognizes the unique requirements of various industries and works tirelessly to fulfill its clients’ aspirations of offshore development. A four-round interview process is used to select a talented team, with clients having the opportunity to speak with shortlisted candidates.
Indian laws provide sufficient flexibility for the company to terminate a remote team contract at any time, which is why we draft contracts for them there. With no upfront payments, the preferred staff members operate in your time zone.
For further information reach out to us at [email protected]
