When Should a Company Offshore?

At some point during the life of any organization, the owner must make a crucial choice regarding how to advance. In order to scale or continue to grow, the majority of businesses competing in the modern global market must eventually decide whether or not to adopt outsourcing solutions.

It's a tough decision during these uncertain economic times. With a recession on the horizon, the strategic implementation of offshoring solutions to lower costs for processes could mean the difference between survival and bankruptcy for many businesses.

Because of common confusion, let's first make a distinction between offshoring and outsourcing. When a business hires a specialized outsider to carry out a phase of its business process, this refer as outsourcing. This typically means that the personnel of the third party is not directly managed and supervised. In contrast, offshore refers to the practice of a company moving or sending internal jobs abroad. This shows that they continue to manage and monitor the personnel and the way the operation is carried out.

When Is Offshore Not A Good Idea?

On paper, there are a lot of benefits when you expand through offshoring. However, a bit of nuance is needed to fully understand the right timing for offshoring. Let's look at some instances when it's a bad idea.

You Need Frequent Communication with Target Customers

If you're a startup that's just taking off and still in the middle of developing your product, you need to be in constant direct contact with your customers. Offshoring customer care services to a third-party provider will have more disadvantages than advantages as you build and adapt your product to your client's needs.

Offshoring Won't Fix All Your Issues

It's best to view offshoring as an option when you've finally established your business on stable foundations instead of being a band-aid solution for rushed and unplanned projects.
It can be hard to decide when it is most appropriate to be deployed, but one thing is for sure, it requires a lot of consideration and number-crunching to realize its full benefits.

Most companies mistakenly join the frenzied demand to offshore without mapping out and verifying if it's really needed.But when it does make complete sense, the benefits of offshoring are astounding and can propel your business into the global market.