Offshoring - Investment or a Waste of Time for Small Business?

Offshoring - Investment or a Waste of Time for Small Business?

2BInteractive | March 29, 2017

Offshoring is a modern business practice where certain aspects of a business’s processes or services are relocated to a foreign country. This process is most commonly done by large corporations, capitalising on lower labour costs or more favourable economic conditions, without having to compromise their quality of work.  With countries like the Philippines proving to be extremely sought-after offshoring destinations, providing a range of benefits, often at a discount as much as up to 70% lower than locally hired staff, it is not surprising that large organization are opting to offshore. 

Offshoring is not just for big businesses!

True, offshoring has typically been undertaken by large corporations in the past, particularly for business processing and contact centre organisations, many of which now hold multiple branches with tens of thousands of staff in the Philippines alone. With all these advantages, and little to no downside, is this business solution limited to big business? Of course not! Nor is it limited to entrepreneurs and startup companies. Whether you are looking for just one staff member or build a remote team, every SME can take advantage of it.  

Now why is offshoring beneficial for small businesses like yours?

Saves Money and Improves Your Profit Margin

We all know that starting a business is synonymous with limited financial resources. By offshoring some of your processes or system to a foreign team, you can enjoy large cost savings, reducing your (labour) operating expenses by as much as 70%.

Saves Time and Allows You to Focus on Your Core Business

It is no secret that running a small business requires a great deal of multi-tasking. Too often though, simply running the day-to-day demands your full attention and takes up all of your time. By offshoring, you can delegate other business activities so you can better use your time and focus on growth or improving your services. As we say, offshoring will give you the time to work ON your business rather than IN your business.

Enables You to Reinvest Your Capital

Your new savings gives you the opportunity to reinvest in your business, either as capital for new product development or even for expansion. Additionally, offshoring to the Philippines gives you access to a vast pool of affordable, highly-skilled, english-speaking, university educated talent to help you once your business starts to expand.

Isn’t offshoring a risky endeavour?

Offshoring can be a challenge especially if you haven’t tried hiring outside Australia before. The communication, transparency, staff control, and quality of work are just some of the things that you need to think about. So if you plan to offshore your business operations, it is important to get in touch with a reputable offshoring company that understands your needs and who can help you make a successful transition.