The Role of Offshore Outsourcing in Increasing Productivity

Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured.

According to the U.S. Bureau of Labor Statistics, offshore outsourcing services, or production to local providers, can change the distribution of production. Offshoring can also affect business sector productivity if offshore workers are more productive than the local workers, or vice versa.

Below are the reasons why offshore outsourcing assists in increasing productivity:

1. Prioritization and Distribution of Work:

Some entrepreneurs and small business owners feel a lack of control when they are not managing every aspect of their business. However, if you are spending too much time trying to perform every single task by yourself, you risk being underproductive because productivity is doing more with less instead of simply “doing more.”
Outsourcing is considered more as a strategic tool than a cost-cutting tool nowadays, since by outsourcing certain activities, you minimize risk. If you’re hyper-stressed from trying to complete multiple things simultaneously, and it’s taking a toll on your productivity, consider outsourcing.

2. Managing Remote Teams:

From small startups to large corporate houses, organizations are beginning to rely on effective remote teams in order to enhance productivity. The key to building a successfully distributed team is collaboration. By using a remote-friendly infrastructure, you can now create flexible, as well as skilful, remote teams through outsourcing.
Here are some key tasks that can be outsourced to improve productivity:

a. Payroll:

Payroll is one of the most obvious tasks to outsource. It is labor-intensive and requires specialized skills. Even if you enjoy tracking attendance and doing taxes, your time could be better spent on growing your company. Outsourcing payroll could also improve employment regulation compliance and minimize HR issues.

b. Human Resources:

Like payroll, HR is not something most companies can claim as a core competency. Instead of hiring full time staff and building an HR team, which could be very expensive, partner with an experienced HR and recruitment company that serves various businesses in your industry. Outsourcing HR processes increases productivity by expediting the recruitment process. The sooner you fill an open position, the more productive your company will be.

c. Information Technology:

Information technology services range from infrastructure to management to support. Instead of overseeing IT process, partner with an experienced IT provider to keep your in-house staff focused on the essentials. Outsourcing IT also boosts productivity and efficiency by giving you access to the latest software, hardware and processes without having to worry about upgrades and maintenance.

d. Healthcare:

The healthcare sector is in for a big change with the upcoming ICD-10 implementation. Many businesses are investing in healthcare IT outsourcing for a smoother transition from the old system to the new. Consider outsourcing IT and healthcare services to better prepare for ICD-10 and help you focus on your core business.

e. Design and Creative Services:

You could probably learn to design your company logo, letterhead, promo materials and website, but it would take much longer and the final look may not be as polished as a professional’s work. Outsourcing to website and graphic designers will save you both time and money.

f. Social Media:

We all enjoy connecting with our customers or fans via social media channels like company blogs, Facebook, Twitter, etc., but updating and targeting content, and converting followers into customers can be time-consuming. By outsourcing social media management, content creation, and other related tasks, you can concentrate on what you do best.

There are very few locations in the world with the right mix of cultural compatibility with the West, a growing labor force that communicates in English excellently, and the lowest prices in the industry. Large corporations have established operations in these countries to increase productivity and reduce expenses.

IT-BPO companies in these countries make it easy for clients to get started with minimal risk. You have maximum flexibility when it comes to pricing, the number of people you want to hire and the kind of services that you want to outsource. Partner with a company that offers custom solutions to make sure all your objectives are met.


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