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The past 18 months have taught many business lessons, especially about how we run a business. It has accelerated globalization for decades, forcing businesses to adapt to a more digitized world. As a result, offshoring is here to stay.

What is offshoring? Is it the same for outsourcing?

Offshoring, also called offshore outsourcing, refers to the delegation of services to a country in a different region. Usually, companies in the US and UK delegate one-off projects or an entire department to countries far away from them.

Most people use outsourcing and offshoring interchangeably. Although offshoring might be called outsourcing at some point, outsourcing isn’t always offshore. Indeed, the latter is a generic term for delegating services, whether locally, in a nearby country (nearshoring), or offshore.

To which countries can I turn when I delegate abroad?

You can try to outsource your services to a destination that specializes in certain functions. Some of these destinations include:

  • India – India remains a top destination for offshoring IT and development services. American companies prefer the country because of its low costs, high quality services and 24/7 support.
  • The Philippines – The Philippines complements India’s IT expertise with its customer service and back-office specializations. Companies prefer to outsource locally due to its strong cultural compatibility, hospitable employees, and competitive workforce.
  • South Africa – With its growing popularity, South Africa is poised to be the next outsourcing powerhouse competing with India and the Philippines. The country is known for its world-class infrastructure and level of customer care.
  • Eastern Europe – Eastern Europe is an ideal destination for nearshoring and offshoring for software development and IT services. Destinations in the region such as Ukraine and Poland are known to produce talent with years of expertise in managing IT-related work.

Can offshoring benefit me in 2022?

Indeed, offshoring can bring you more benefits than just reducing costs. Here are some key benefits you can get by hiring offshore staff:

  • Access to specialized experts. Companies should not be limited to their country of origin when looking for suitable talent. They can hire highly skilled experts with years of expertise from different locations.
  • Government incentives. Most offshoring destinations have full support from their local government agencies. BPOs and their clients typically benefit from tax incentives and duty-free imports to attract foreign investment to these countries.
  • A better way to evolve. Offshoring is also a better way to scale a business more efficiently. A $10,000 investment can go a long way with the cheap labor and operating costs at offshore destinations, helping them maximize their profitability.
  • Encourage business continuity. Finally, offshore personnel will not be easily affected by calamities and crises facing their home countries. With this, businesses can continue to operate as usual without interruption.

Related: What You Need to Know Before Outsourcing Your Startup’s Engineering Team

What challenges might I face?

Despite the huge benefits, companies can still face several challenges when outsourcing their services, especially to increasingly popular countries. However, they can still work around the following downsides when needed.

First, language compatibility can still be a barrier for companies relocating to countries like Vietnam and Malaysia. Having average proficiency rankings, these countries are finding ways to improve English proficiency, especially in the workplace. Clients also face cultural compatibility issues when working in teams.

Finally, concerns about data security and compliance remain. Because customers are located miles away from their teams, they have less control over their operations, making them more susceptible to data breaches and intellectual property issues.

Related: Is Offshoring Really the Best Option?

How can I successfully relocate?

While offshoring your duties can be easy, it requires careful planning to get it right and avoid inconvenience. Here are some ways to relocate well:

  • Prepare your plans and processes – First, set up your outsourcing plans and processes. Preparing your processes earlier can help your team better understand what you expect of them and how their tasks should be performed.
  • Get to know your favorite destination – It pays to know a lot about your favorite relocation destination. Go beyond their costs; analyze everything you need to know, including their English proficiency, work ethic, and specialization.
  • Choose a suitable service provider – The same standards in choosing a destination should also apply to your service provider. A simple Google search on an outsourcing company gives you more information about their prices, services, rankings, and customer reviews.
  • Establish communication with your outsourcing partner – Finally, establish good communication with your outsourcing partner, especially when working with your team. This helps you tackle any challenges your team has and check for updates and changes on your system.

This is always the best time to outsource your functions. Once you’ve started planning and analyzing the costs you can save in the long run, all you need to do is make an appointment with your service provider to get started.

Offshoring companies are there to guide you in your needs and requirements when delegating your services. With their years of industry experience, you can rest assured that you can get the most out of your team.

Related: How to Choose the Right Offshoring Partner