Why Offshore Outsourcing independently is not viable for 99% of Companies:
-
Conventional offshore outsourcing, (go to India and setup offshore outsourcing offices) is feasible only for MNC's, such as Dell, Shell, Microsoft etc. Offshore outsourcing is a productive practice for MNC's because they turnover billions of dollars per year and outsource large quantities of work. The cost and time invested by MNC's in setting up offshore outsourcing offices in India, is undoubtedly offset by the significant gains achieved from outsourcing large volumes of work.
Due to the 1) cost, 2) time 3) effort involved in the logistical aspects of offshore outsourcing, 99% of companies cannot however outsource. Some of the offshore outsourcing logistics that make outsourcing unrealistic for 99% of businesses include:
Setting Up Abroad: i) leaving your country ii) hiring/purchasing a office iii) purchasing all hardware and office equipment iv) researching the best outsourcing location v) investing in infrastructure, e.g. generators
Understanding a new Cultural: where do you begin when it comes to setting up an offshore outsourcing office in a completely foreign country? Furthermore, if one does not know the culture, customs and practices of a country then executing even a simple task can cause great difficulty. Without cultural and local knowledge of how things are done in a country, outsourcing to a foreign country is a very difficult process.
Recruitment of Employees: where and how would one recruit the most talented employees in a foreign country?
Quantity of Work: 99% of companies only want to employ between 1-50 employees when they outsource. Most companies are looking to outsource remedial every day work/back office operations or outsource specialist/highly skilled professionals they can't find or can't afford back home. 99% of companies are not looking to outsource departments of 500 employees like MNC's. To outsource between 1-50 positions via conventional offshore outsourcing means is simply not cost-effective and thus offshore outsourcing an unrealistic option for 99% of companies.
Unless a company seeks to outsource hundreds of positions, offshore outsourcing is simply unfeasible. The gains a company can achieve from outsourcing a handful of positions would be quickly offset by the costs involved in logistics of offshore outsourcing.
The SME Offshore Outsourcing Solution:
The solution for SME's (small to medium sized firms) unable to offshore outsource is to outsource with Virtual Employee service providers. With Virtual Employee offshore outsourcing service providers, SME's can now also outsource to India. This is because, Virtual Employee offshore outsourcing service providers do the "outsourcing" so you don't have to. A Virtual Employee offshore outsourcing provider will provide you with the type of employee you want. The employee will work from the offshore outsourcing service providers office and will be equipped with all the hardware necessary to work remotely, i.e. PC, fast internet connection, phone with US number...etc. The employee will work directly for you and follow your instructions. The offshore outsourcing service provider in turn, will manage the employee on your behalf and take control of all offshore outsourcing logistics. Hence, SME's can now offshore outsource to India like MNC's.
(Related Article: How Virtual Employee service providers make offshore outsourcing easy, low costing, realistic and for anyone).
