Reasons Why Offshoring Is The Right Strategy For Your Business

Offshoring is a business growth strategy in which a corporation relocates or moves a group of operations or activities to a different area in order to benefit from cost benefits, economies of scale, to strengthen its global footprint, etc. Many prominent corporations outsource their operations to nations including China, the Philippines, Malaysia, and India. The following are the reasons why offshoring is the right strategy for your business:

1. Reduces Business Costs

Companies offshore a portion of their activities to another country primarily to save costs. Offshoring can cut expenses by taking advantage of current comparative cost advantages. 

An entry-level employee in North America will normally earn $20 per hour. If the corporation offshores the same skill to the Philippines, the entry-level Filipino employee will only be paid $3.50 per hour.

Let’s further assume that 20% of gross income comes from labor. Operational costs in North America would then be $100 on average per hour, compared to $17.5 in the Philippines.

2. Increase your knowledge and innovation.

Increase your knowledge and innovation

Offshoring your operations gives your company a stable presence in international marketplaces. Your business can create relationships with other local vendors and third parties with a stable presence, which will help gain more knowledge about a new market.

This new knowledge or information manifests itself in a better understanding of local costs, improved access to skilled personnel, and a clearer understanding of political, cultural, and administrative systems.

3. Better operational control

If you wish to hire internationally, you have two possibilities. Either outsource or offshore it. You don’t have to transfer business activities offshore. Outsourcing restricts business operations. If you intend to create a worldwide workforce, you must understand the difference between the two.

You have freedom and control over your team when you collaborate with an offshore business. You have the option of training your employees or giving your offshoring partner instructions. The duties are ultimately under your total control, and the offshore partner fulfills your criteria.

4. Retraining is not required.

Teams are more productive and effective when there are no interruptions. When you hire someone offshore, you get to pick your team. It is comparable to an internal team; the main difference is that they are not in the same location.

Your offshore staff is prepared to complete tasks when you allocate new projects to them. Your offshore personnel will only need to be developed and improved upon once you have trained them. Continuous learning keeps them abreast of trends and cutting-edge technologies so they may better serve your clients.

5. Availability of skilled talent

Finding highly competent people is one of the biggest business constraints. Each year, more graduates are being produced by schools. You will undoubtedly locate the ideal applicant to recruit. You can pick from a variety of talents and hire them to provide the results you want.


Many businesses, including small and big ones, are embracing offshoring as it has different benefits to offer your business. There are a few disadvantages attached to it if you choose the wrong company to partner with. That is, if you partner with a company that does not understand your needs and how to carry them out. This is why businesses partner with EmpireOne Contact Center to get one of the best results when it comes to handling customer service. Our pool of talented team members carries out work functions with diligence, which then keeps customers happy and yields profits in return. For a cost-effective solution, call us right away