Increasing the efficiency of businesses has never been as easy as it is today, thanks to offshore outsourcing. With the high cost of labor and pressure to maintain a competitive advantage, this strategy has paved the way for companies to expand their capabilities, enhance operational efficiency, and boost their profit.
As globalization made hiring borderless, companies are leveraging offshore staffing solutions to onboard high-performing global talent into their workforce at a lower cost.
If you’re looking to explore offshore staffing, this article is for you. Here, we’ll walk you through the benefits of offshore staffing and share key tips and insights on Philippine offshore staffing.
But before we get into the meat of this blog, let’s first define offshore staffing.
What Is Offshore Staffing?
Also called staff leasing, offshore staffing refers to a type of outsourcing in which you hire employees from another country. Offshore outsourcing companies like KDCI Outsourcing offer offshore staffing solutions to augment clients’ headcount at scale and bridge skills gaps without ramping up the cost of hiring.
How Offshore Staffing Benefits Your Business
Your business is unique in its own way. What may work for big companies may not be the right decision for you. So, if you’re looking to benefit from offshore staffing, here are the things that you can expect and how you can incorporate them into your business:
1. Cost-Effectiveness
A common promise of offshore staffing is cost-effectiveness. It’s a force multiplier, and you gain a competitive advantage because you can funnel money elsewhere and grow other aspects of your business.
You also have the option to DIY or hire an outsourcing company with offshore staffing services. There is, however, a risk to DIY-ing as it’s challenging to source highly qualified people, or you may employ substandard talent.
CareerBuilder, cited by Business News Daily, found that hiring the wrong person sets you back as much as $17,000 USD. Rather than saving money, you’ll end up paying more for mediocre talent.
On the other hand, building a team through an offshore staffing company makes it more than just for cost-cutting. It brings value to your investment through highly capable and experienced talent who are focused on growing your business. Moreover, you get to save up to 70% of costs in:
- Infrastructure
- Hiring and onboarding
- Human resource outsourcing
- Payroll
- Healthcare
- Ecommerce services
Therefore, to actually achieve value for money, find an offshore outsourcing partner that fits you and see how you can capitalize on what they can offer. If you own an Ecommerce business, then it would make sense to partner with an Ecommerce outsourcing company.
2. Enhanced Business Continuity Plan
Untimely events like natural disasters, power outages, security breaches, or pandemics can affect business operations. Therefore, having a robust business continuity plan ensures that your company can still survive when untimely events occur.
Offshore staffing is one of the best strategies for business continuity because you have an unaffected team overseas to help you.
To use offshore staffing for business continuity, you need two things:
- Think about the tasks you can’t afford to postpone.
- Find an outsourcing company that can deliver those tasks and has its own business continuity plan.
Through these, you can rest assured that your business can and will survive whatever unforeseen circumstances your company may face.
3. Expand Business Operation Capabilities
Outsourcing staffing solutions to a country with a different time zone gives you the advantage of running your business 24/7. Additionally, having an offshore staffing agency to help you manage your offshore team means you can sleep well at night knowing that your company is running smoothly.
Businesses in the US can benefit from this time zone advantage by outsourcing to countries with an 11- to 12-hour (or more) time difference, such as Indonesia, Malaysia, and the Philippines.
Some of the most common offshore outsourcing services are:
- Accounting and finance
- Administrative support
- Creative services
- Customer service
- Digital marketing
- Software development and IT
4. Speedy Turnaround Times
If you don’t like the idea of 24/7 business operations, many offshore staffing agencies are willing to work at your hours and provide fast turnaround times.
You won’t have to worry about getting your products or services months down the line. By working with an experienced offshore team from a reputable offshore staffing company, you can get access to the same quality of service and skilled professionals as you would in a local market.
Many offshore professionals can utilize industry-leading technology to collaborate and provide timely digital deliveries that will improve the capabilities of your company.
5. In-House Efficiency
Offshore staffing comes packaged with the benefits of expanding your company’s operational capabilities, ensuring speedy turnaround times, and improving in-house efficiency. Since you can outsource your minor — but critical — tasks, you can develop your internal workforce further.
For example, if you’re just starting to build an online store counterpart for your brick-and-mortar business, that would require a lot of product data entry and content creation.
These tasks, although seemingly effortless, take quite a while to accomplish. If you delegate these tasks to your internal employees, it can slow down your overall progress and delay your launch date.
With offshore staffing, your staff gets extra support from overseas. You can then delegate higher-value tasks to your internal team, or even move them up into leadership roles.
6. Economic Business Expansion
Expanding departments is one of the most evident signs that your business is growing.
As your business grows, the offshore model helps you respond quickly to increasing demand and workload. Because it enables you to expand your team headcount and infrastructure rapidly without significant upfront investments, such as capital expenditures, taxes, and other operational costs.
Offshore staffing solutions can help you expand without overcrowding your current office space and without overspending. Moreover, hiring an offshore staffing company means you have someone to take care of your employees, including housing, HR management, taxes, and more.
7. Delegate Management Tasks
Working with an outsourcing company will give your business the option to have an account manager who will manage your team for you. As a company, this means you just need to report the services and the type of skilled employees you need.
An outsourcing company will most likely have a team of experts for whatever task you need, making sure that they fit your requirements and can deliver project deliverables on time. This can free up management resources to add to your level of production at home.
FAQs on Offshore Staffing In the Philippines
Below, we answer common questions about Philippine offshore staffing:
1. Why Should I Hire Offshore Staff From the Philippines?
Here are two reasons you should hire Filipino offshore workers:
- Cheaper Cost of Labor: For context, workers in non-agricultural sectors can have a daily minimum wage of ₱695 PHP or $12.18 USD, according to the Department of Labor and Employment (DOLE).
If you’re building a team of offshore workers from a Philippine BPO (business process outsourcing) company, it can cost you between $269.91 USD and $793.30 USD per employee every month. Role and seniority level can, however, influence the cost of labor. Even so, it’s still cheaper to hire a professional from the Philippines rather than in your home country.
- Fluent English Skills: In the Education First English Proficiency Index (EFEPI) report, the Philippines has “high proficiency” in the English language and ranks second among all Asian countries. Hence, Filipinos can write in perfect grammar and pronounce English words correctly, making them suitable for customer support, content writing, or copywriting roles.
2. Are Filipinos Non-Confrontational?
Filipinos are inherently non-confrontational. When working with Filipino professionals, you’ll notice their politeness and respect manifest in the “Yes Po” culture.
While the “Yes Po” culture cultivates trust and harmony between individuals, it can widen communication gaps and send vague and ambiguous signals to cultures with straightforward communication styles. Hence, a simple “yes” can mean multiple things, from a literal “yes” to “I don’t understand.”
Building a relationship grounded in respect, trust, and open communication encourages your Filipino team to speak up without compromising their values.
3. Where Do I Build A Filipino Offshore Staffing Team?
You can form your team of offshore professionals with the help of KDCI Outsourcing and other top BPO companies. These service providers are experts in sourcing, screening, and onboarding the right offshore employee for your team. From human resources to property management, they offer a myriad of outsourced roles for any business function.
4. Can I Scale My Filipino Offshore Team?
Yes, you can. Offshore staffing service providers offer scalable offshore staffing solutions to support your evolving business needs and requirements. Since Filipino offshore staff are cheaper than in-house hires, scaling your business up and down according to demand and seasonality becomes less of a financial hurdle.
5. How Often Should I Communicate With My Filipino Offshore Team?
A good rule of thumb to keep in mind is to maintain regular communication with your offshore team to avoid misunderstandings. It’s also a great way to track progress and address any issues before the final output is delivered. Scheduling a weekly check-in is vital for aligning future goals and performance expectations.
Reap the Benefits of Offshore Staffing With KDCI Outsourcing
Offshore staffing comes with many benefits for the growth of your company. However, doing it the right way by partnering with an experienced outsourcing company with an excellent track record will help you achieve more.
KDCI Outsourcing’s tailored offshored staffing solutions are designed to maximize your business’s efficiency and growth by augmenting your internal team with high-powered talent specially sourced, screened, and onboarded by our expert recruiters.
Choose KDCI Outsourcing As Your Offshore Staffing Partner
Whether you need data processing or content creation services at scale, KDCI Outsourcing can support your non-core tasks while your internal staff handles core business needs.
Start building your offshore team and contact us today!
