Offshore outsourcing services have benefited companies for several years back, up till this moment. Organizations are increasingly using offshore outsourcing as a strategy to hedge certain business upheavals. In this article, we will look at the strategic benefits of offshoring;

• Flexibility; especially in the area of staffing or hiring. Sometimes, it may not be necessary to permanently hire and continuously pay workers for a business function that does not have continuous activity flow. In such cases, it is more cost-beneficial to hire employees on short term basis, especially during the peak periods of such business function, and disband the offshore team when activity-flow stops. Offshore outsourcing services provide the perfect solution for this scenario.

So, look inward and see if some departments in your organization are not necessary or could be merged with a similar one. If the necessity of a department is on a periodic basis, consider using offshore services when the need arises. This way, you will save significant staffing cost, and make recruitment more flexible for your company.

• Revenue; the idea of outsourcing (which involves spinning out a business function to a vendor) provides additional revenue for the organization. The revenue is derived from the surplus of not hiring in-country employees or handling the task in-house. Consequently, the surplus fund is ploughed back into the business for growth and expansion.

• Speedy Migration to Latest Technology; the top offshore destinations such as Philippines and India are globally renowned for expertise and incorporation of the latest technology in servicing the business functions of their international clients. Consequently, a company leveraging offshore outsourcing services is privileged to migrate to the newest technology faster than its competitors.

• Liabilities Transfer; by outsourcing certain business functions to an offshore company, the liabilities that come with such business functions are also transferred to the outsourcing service provider.

• Strategic Resource Re-deployment; this is bottom-line strategic benefit when outsourcing is implemented successfully. Both human and material resources are re-deployed to core activities of the organization that require more attention.

• Scalability; an organization leveraging offshore outsourcing will normally get set to handle a permanent or temporal raise or decrease in production.

• Improved Capacity for Innovation; organizations increasingly take advantage of external expertise to make up for its in-house limited capacity. This is one of the most desirable strategic benefits of offshoring.

Obviously, offshore outsourcing services come with loads of benefits. However, profound vendor selection process is essential. A company should not be overtly driven by cost when trying to pick a vendor for its business function. The proficiency and expertise of the potential vendor should also be highly considered. This is the best way to make most of offshoring.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com