Offshore outsourcing has been widely popular all around the world. Well, the credit goes to globalization. Many large and small companies partner with offshore outsourcing companies from India, Malaysia, Ukraine, and the Philippines. It has gained a reputation for being the most practical solution to enhance your business process and reduce operating costs. It is also a potential way to streamline your business operations. Companies consider this to stay competitive in the global markets. But don’t you want to know the concrete benefits of offshore outsourcing? Well, keep on reading this blog and learn how is the outsourcing strategy right for you.
But let us start from the basics.
What is Offshore Outsourcing?
Offshore accounting is a process where a third-party provider outside the country performs the tasks that are usually done in-house. The term offshore means that the main service provider is from a different country. This outsourcing is popular due to its cost-saving benefits. Companies in the US, UK, and Canada outsource their business activities to BPO firms in India to cut operating and labor costs. Apart from the cost-saving benefit, companies get access to the top talent pool, resources, and technology that will improve their services. All these factors combined will translate to business growth, customer satisfaction, and increased revenues.
Globalization also had a major impact on offshore outsourcing. Let us see how.
How globalization influenced offshore accounting
The world is a global village. With the advent of globalization, companies can do business with each other digitally irrespective of the distance. Offshore outsourcing can catch a growth of $904.95 billion in 2027 from $620.38 billion in 2020. This translates to a 5.54% compound annual growth rate (CAGR).
The beginning of outsourcing can be dated back to somewhere between the 19th and 20th centuries when businesses started providing other companies with material and human resources.
In the 1980s, outsourcing turned into a viable business solution. This strategy later became important for the global economy in the early 1990s. The rise of globalization, combined with technological advances, laid the way for offshore outsourcing.
Presently, businesses of all sizes prefer to outsource their work in foreign countries. This reduces the overall expenditures and streamlines operations. Also, the rise of It companies all over the world has resulted in an exponential rise of offshore IT outsourcing.
Let us shed light on the concrete benefits of offshore outsourcing.
Benefits of offshore outsourcing
The main of this blog is – what are the advantages of offshore outsourcing? Most of them will say cost reduction. But there are more benefits than meets the eye. Let us explore them.
Competitive Pricing
It is not a secret anymore that offshore outsourcing to India and other destinations. Offshore outsourcing can lower up to 70% of all labor costs. It can also help you save on operating expenses as countries like India have a lower cost of living. Apart from the operating and labor costs, the BPO companies also let you get exclusive access to top-notch expertise, technology, and resources that are equal to your high-salaried home country counterparts. Offshore outsourcing provides you with an opportunity where you can improve your business performance while reducing business expenditure.
Talented Workforce
It is very common for companies to conduct business with one another in this age of globalization. Another benefit of offshore outsourcing is the ability to access a globally talented workforce.
Take India as an example where you have experts to handle your IT and software development needs. They are proficient in the English language and are very hardworking people. They are best for customer service operations and voice-related services.
Modern technology
Companies also outsource modern tech aside from apart from access to a talented workforce. If a company is mediocre in technological resources, then it can outsource them to a reputable outsourcing company to address these gaps.
You can get access latest digital tools and applications that can help you streamline your workflows, accelerate your processes, and streamline your workflow. Well, as a result, offshore outsourcing helps in improving the services and optimizing the solutions.