Outsource or Insource?

By in
Outsource or Insource?

Outsourcing administrative functions offshore; a conversation that is becoming increasingly common.

Through our own learnt experiences and conversations with our clients who have gone through the trials and errors of using offshore support, these are the key factors to consider when entertaining the idea of looking offshore.

Pros:

  • Cost savings. One of the most significant advantages is cost savings. Offshore workers often come at a lower hourly rate or salary compared to onshore employees, which can help reduce operational expenses.
  • Scalability. Offshore teams can be scaled up or down quickly to match your changing business requirements without the need for extensive hiring processes and long-term commitment.
  • Dedication and focus. Having an offshore resource focus on set tasks allows them to become experts in those tasks, working efficiently and effectively to keep the day-to-day operations running, freeing up your onshore staff to focus on more strategic and revenue-generating activities.

Cons:

  • Time zone challenges. While time zone differences can be an advantage, they can also create challenges with real-time communication and coordination, especially when an immediate response is needed.
  • Dependency on technology. Offshore work relies heavily on technology and infrastructure, so issues like internet connectivity, power outages, or hardware problems in the offshore location can disrupt workflow.
  • Communication challenges. Language barriers and differences in communication styles can lead to misunderstandings and miscommunication, which may affect the quality of work.

Tips:

  • Have your onboarding perfected. Onboarding and training over video link can have its challenges, so it’s important to have your onboarding processes, documentation and timeframe perfected before their first day. This will help to ensure an easy set up and let them focus on the learning rather than muddling through topics and IT.
  • Be clear with directions. To avoid any confusion with language barriers or time zone differences, be clear when setting tasks as to what you need, why you need it and when you need it by. This will ensure they have all the information they need to produce quality work on time.
  • Whilst they may not be in the onshore office, they are still a part of the team; include them. Having regular meeting and catch ups with your offshore support (via phone or video) allows you to check in to discuss performance, understanding of tasks, company goals and their wellbeing to ensure they feel part of the team.

There are plenty of arguments for and against offshoring your administrative support; and the suitability will differ from company to company, team to team; but one thing is for sure, it’s certainly a conversation that isn’t going away any time soon.