Why Companies Offshore Their Employees

Why Companies Offshore Their Employees


Many companies are looking for more information on how to start offshoring their work because of the efficiency and cost savings associated with a high-quality product. This has led many United States companies to turn to India and the Philippines for workers. The result is more efficient businesses and increased productivity. If this isn’t enough to convince you to look into offshoring, keep reading for the biggest reasons companies hire foreign employees. 

Shortage of Skills

One of the biggest reasons companies have started offshoring their work is the lack of qualified employees in the United States. Instead of hiring workers in the United States that aren’t up to snuff, they can hire offshore workers in countries with a large pool of skilled and experienced workers. 

One example of this is the shortage of qualified IT professionals in the United States. This makes it difficult for smaller and mid-sized IT companies to find and hire developers. Furthermore, when these businesses find programmers, they often can’t afford the expected salaries for people in this position. Therefore, these locations will turn to offshore workers in Asian countries, such as the Philippines, to find experienced and skilled IT professionals that they can afford. 

Savings on Costs

Companies can save more than three-quarters of their salary costs when they hire overseas teleworkers. This is because they don’t have to pay for operational expenses, salaries, or benefits. So when you choose a country that has lower facilities, utilities, and labor costs, you can save a lot of money by offshoring your work. 

Efficiency and Quality of Processes

Most countries that deal with offshoring make it quick and easy to set up a system that adheres to necessary standards. That means you can establish a production site in the Philippines or any other Southeast Asian country and expect to start making products quickly. On top of this, the workers you hire will be accustomed to working quickly and accurately, so you don’t have to worry about skimping on efficiency or quality. 

Coverage of Multiple Time Zones

By offshoring your work, you can offer 24/7 operations when you hire foreign workers to handle what would be your off-hours at home. As workforce data has shown, there is a sizeable population in popular offshoring destinations, such as the Philippines, willing to work outside of normal business hours. This means that when your US-based team is finished working for the day, they can turn over the operations process to the people offshore.

Focus On Business Activities

Smaller and mid-sized businesses often have limited in-house staff to handle regular business activities. However, hiring offshore workers can free up staff time to focus on meeting goals, forming strategies, managing, and planning. This is especially true when you need to offshore IT or other digitally provided services. 

Many companies have turned to offshore employees recently. This is because offshoring offers many benefits. These can help a business increase productivity and profit, making them worthwhile. Therefore, you should consider trying this trend today if you need to improve your business operations quickly. 


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