5 MAIN BENIFITS OF MAINTAINING A FLEXIBLE WORKFORCE

What do you think when the word “Offshoring” is used? Most people give a general definition that it’s the practice of relocating businesses from one country to another. However, when it comes to business models in companies, offshoring refers to getting your work done in another company in another country. Many globalized companies in the world use this business model method to explore their business. In Australia, almost all the big banks, telecommunication companies, insurance companies and many middle and small-scale engineering, accounting, IT and marketing sectors are being working with offshore staff to meet the demand of the local market. In a simple term, we say we want to hire an external agency or a third party to set up our business process for us. There are many benefits of offshoring your business.

1. Cost savings

The most apparent benefit of offshoring is a profit-boosting strategy, and it is necessary for today’s competitive market as it helps to reduce the labor cost and serves you with great benefits. This business strategy helps in decreasing the production style as you can easily depend on the enterprise solution companies for your work. Due to low infrastructure costs in Asian, African and Middle eastern countries, it is advantageous to use their highly skilled workforce for the fraction of what it would cost within Australia. Costs such as remuneration benefits, superannuation costs, overhead costs, taxes, bonuses as well as staff salary costs can save your company up to 70% when seek to source offshore employees. Through offshoring, business prospects are captured to reduce the costs and thereby increases the quality of your company’s work. With the quality and flexibility in the work, offshoring readily reduces costs to the company.

2. Focus on core business activities

In a situation where all your business activities are being handled by in-house employees, it can make the work complicated for them and at the same time slow things down. When you offshore some part of these activities to an offshore team, it gives you and your team more time to focus on your core business activities that brings more sales and revenue to your company. Top offshoring firms across the world have well-trained personnel who are good at what they do, and as such, organizations are required to reach out to them, give them all the necessary details about the project, and the offshoring agency will handle the rest. The main advantage of business offshoring is that it helps reduce business risks as there is more hands-on deck to tackle challenging business situations. More so, the opportunity to connect with individuals and business experts across different facets of the business world is highly recommended. These give the organization the chance to connect, learn new ideas, and subsequently adopt these strategies to further improve the company’s stock.

3. Access to talented employees

Adopting the offshore resourcing model allows you to reach world-class business professionals that may be limited or unavailable locally. The offshoring model gives your business unreserved access to a pool of young talents around the world. With today’s pressure of finding employees with the right skill set in already developed countries, acquiring offshore teams will complement the already existing staff. For businesses hoping to meet certain requirements, the wide range of skills available for processes that are knowledge-dependent through offshoring becomes an advantage.

4. Economies of Scale

When companies offshore their business, they are not only looking to cut cost, but they are also taking advantage of existing economies of scale. Most countries in Asia, Africa and Middle East have a very low standard of living and cost items such as power, internet connectivity, rent there are much lower. For these reasons, companies can definitely take advantage of their job markets. According to research, companies offshoring their businesses abroad expect to realize a cost savings of about 70%.

5. Close Collaboration

Offshoring can strengthen and expand your control over operations and production. It allows you to form a dedicated group of employees to work and focus on your company only. Even though there is a misconception that outsourcing takes away the control you have on your business, it enables you to sophisticate your processes by establishing your control on all aspects of every business matters. With today’s technology, remote working had made things very easy and transparent. As a business, you can take advantage of staff tracking software to monitor your offshore team as if they are sitting at your office. You know it will be your duty to train your staff and see to it that everything they do aligns with the way you want it. This can thereby lead to more productivity and a sense of accountability from your dedicated group of employees. Generally, you will benefit in terms of cost, and depending on how operations are managed, you can realize high productivity using this business model. One thing is for sure about business outsourcing; it is a popular strategy for business development in the present time, only to increase its demand in the future years to come.

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