Why Companies Use Offshore Talents

Why Companies Should Use Offshore Talent

Launching your startup business requires a lot of planning. This involves taking into consideration where to make investments. Employing the best talents out there will help you reach your goals. But it’s not cheap. And this is where offshoring comes in handy. Let’s find out how you can effectively recruit offshore talents.

In business, partnering up with offshore companies is nothing new. Most times, this is confused with business outsourcing companies.

We talked about what is offshoring and outsourcing and determined their main difference in our last blog “Offshoring vs Outsourcing: What’s the difference?”. If you’re considering building your business using offshore talent, you must first understand what works for you. Let’s do a recap.

Offshoring lets you keep full control of your business processes. Unlike outsourcing, you never have to share any critical or proprietary information with anyone else. This reduces the risk of infringement. With offshoring, your employees might be located in a country where you can save on employment costs. 

Outsourcing works as allowing any third party to take an important function in your organization. It has its own advantages and disadvantages. This is pretty useful in production and taking in skilled workers. Outsourcing gained popularity in the 1990s. Companies started to cut non-essential labor costs and started outsourcing jobs in customer service, accounting, HR, and many others.

Now let’s go back to why you should consider using offshore talents. That doesn’t mean that you have to compromise on quality. Remember, you have full control over your business processes. But you have to do your homework. What do you need to understand before hiring offshore talents?

Why Use Offshore Talent?

When you are a startup, you have to always consider the business costs. Working out-of-pocket, you have to be smart about where you will spend your money. If you’re working on a tight budget then working with offshore talents can be an alternative.

Look at it this way, there are a lot of tech startups out there who took advantage of creating an offshore team. Take Skype, for example, they created a team based in Estonia. IBM, Apple, Microsoft, and many other software companies actually use offshore talent. 

Besides being able to save on employment costs, you get smart people to work for you. We’re so confident about this, why? We’ve been hiring offshore talents for years!

But more on that later. We’ve determined that there is a distinct difference in business processes between outsourcing and offshoring. Let’s take a look at a possible business situation.

Let’s say that you want to hire two software engineers for your next big business idea. You partner up with an offshore outsourcing company with a limited budget.

They were able to give you engineers, but after some time their productivity vs. their output just isn’t how you expected it. You’re at a loss, it just isn’t feasible to continue with the partnership as they are not delivering what was promised. 

When you use offshore talents, you are involved from hiring to production. Like we said, total control. You get to know where your team is stuck, how you can improve, and move forward with the project in a timely manner. Also, working with experienced offshore talents will make work easier! What are some of the disadvantages when you use offshoring?

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Your Startup and your Offshore Talent

Now we talked about the differences between outsourcing and offshoring. However, it would be good to gain awareness about the disadvantages. Getting an idea would help you decide on which roles you are willing to offshore talents. Let’s flip the coin and discover the disadvantages of business offshoring.

You want to cut labor costs and get quality employees. Any startup founder would want that. This is actually a strategic move. In essence, you should be smart about where you will spend your money. Here are some of the disadvantages of offshoring:

  • Language barrier
  • Sociocultural differences
  • Time Zone adjustments
  • Quality work
  • Decreased onshore job opportunities

One of the hot topics in HR right now is work-life balance. How can you do that with your offshore talents? You can offer flexible work options all the while that they should hold their end of the deal. Your team should deliver and get their work done within an agreed set of parameters. 

When COVID-19 hit, many workers considered work flexibility as an important factor. The US Bureau of Labor Statistics tracked the number of hours an average employee works.

It was found that 81.7% of employees did some or all of their work at a workplace, while 23.7% did some or all of their work at home. Employees having flexible work arrangements have a higher level of job satisfaction and loyalty to their employers.

How does this apply to business offshoring? Well, before onboarding a new team member, both parties need to agree on a schedule for them to work together.

You can require a 4-hour overlap where you can sync up or for them to do the urgent tasks within your workday. Whatever the purpose is, you have to be clear on what you need and expect from your offshore talent.

Building your Offshoring Team

Just like getting an onshore team to work together, the same goes with an offshore team. It is critical that you choose the right offshore talents. What do you need to consider before building the best offshore team?

1. Skills Assessment

As a startup owner, you must already have a vision of your business and where you want to take it. Think about the core skills you need to launch your startup. You could require your offshore talents to have good language skills. You are in control. Best to look for employees with who you can communicate. Offshoring will take some work but it will help you in the long run.

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2. Business Goal Setting

Build a business strategy with at least 3 core goals. Set reasonable deadlines with the current amount of manpower that you have. Match every milestone with your determined business goals.

3. Fix Finances

Now it is not new for startups to have this kind of challenge. You need to keep being realistic about where you are spending your money. Keep tabs on where your focus lies in building your business.

4. Timelines are goals

Getting past every milestone is already a big win. Now you have to determine what those big wins are. Even before launching your product, consider the amount of time spent on each project. If you feel like you need outside advice for then maybe it’s time to hire a specialist.

5. Don’t forget business challenges

There will be hundreds of bumps along the way. Don’t worry, every startup will encounter similar challenges. It is best that you identify the top pain areas. Look for an offshore team who will be able to solve those problems for you. Talk about value for your hard-earned startup money. New ideas will brew and you might be surprised to see innovative solutions to your problems.

Offshoring: a Thing Today and Tomorrow

Hiring offshore talents is nothing new. Startups have been using offshore outsourcing for years. As a startup founder, you need to consider your core company goals. Partnering up with qualified offshore talents will help you launch sooner.

However, taking care of your employees should also be a priority. Encouraging work-life balance in the workplace will increase productivity, loyalty, and employee satisfaction. Set proper parameters that you and your offshore talents will agree on. The rewards will be endless.

Offshoring will give you opportunities to save not only on labor costs, you never have to compromise quality. From hiring the right people up to production there will always be things you need to consider.

Building your startup will not be a walk in the park, that’s for sure. Your determination and drive in making your vision a reality will help you along your journey.

If you’re having difficulty in looking for quality offshore talents, you may want to enlist the help of an offshore company like Full Scale.

From recruitment, workforce management, content development, until launching we got that work covered! It’s time to shift your focus to where it matters, let us do the rest.

We’re always down to work with you. Let us know how we can help you succeed and make your big business goals a reality!

Contact us now to start building your team!