Offshore outsourcing is shifting a section of the business to an independent third party that can do a better work in a more efficient manner. It has become customary for businesses to outsource work as they attempt to minimise cost, labour and envision their business enterprise in industry. Ever-increasing competition and with government enabled taxes and restrictions, most organisations will seek at every opportunity to minimise cost and sustain quality of service or product.

An Interesting Read: How to Open an Offshore Bank Account in Malaysia

Benefits of Offshore Outsourcing

The trend of outsourcing has persisted to develop in the past decade with organisations from a multitude of industries reaping the benefits. Know why outsourcing from offshore jurisdiction can offer a range of benefits :-

• Accessibility to Skilled Expertise

The main intents behind why a business may seek to outsource a task is when it needs skilled expertise. To enable you to put emphasis on your key mission in offering premium quality products and services to your consumers by offshoring the task to individuals that have the apt expertise.

• Emphasis on Key Operations

Workload elevates with further non-core operations and the quality of your core activities suffers as your business develops. Outsourcing in such circumstance to a third party plays a significant role by enhancing your key resources to concentrate on primary business tasks.

• Strengthened Risk Management

Outsourcing will enhance you to share any related risks with your outsourcing partners thereby minimising your burden. For instance, by outsourcing to a proficient outsourcing partner you minimise the risk involved in having the same task done in-house by staff that may not be as proficient in that field.

• Increase In-House Efficiency

After you assign tasks to your outsourcing partner, they share the work structure of your employees. This enables you to grow your internal task force and utilise them more efficiently.

• Operate Your Business 24×7

Offshore outsourcing that is on a different time zone, offering you the added benefit of efficient and productive use of your entire day. Your outsourcing associate can take over and maintain your work even after your employees post office hours. They can finish critical tasks and send it back for your evaluation the following day.

• Adaptability in Staffing

Outsourcing specific independent tasks, enables your business to keep up financial flexibility in events of uncertain demand. It will offer aid in scaling up or down with ease. At a reduced cost, offshore outsourcing offers additional advantages of operating your business comfortably even during off season and holiday months.

• Customer Satisfaction

Your outsourcing partner, with their skilled expertise will produce quality deliverables faster, increasing your turn around time to the customer. With on-time deliveries and high-quality services your customers will be delighted! Outsourcing can help you benefit from increased customer satisfaction and thus creating a stream of loyal customers.

• Cost Saving

All the benefits listed above come with the bonus benefit of lower cost and big savings! When you outsource services like medical billing, call center and etc to a service provider offering better quality services at a much lower cost (potentially save up to 60%)! Maintaining an infrastructure can be an extra burden for some businesses, which outsourcing can remove.

• Competitive Edge

The ultimate benefit of outsourcing is that it helps your organisation gain a competitive edge in the market. Through strategic outsourcing to an outsourcing partner, you are not only providing your customers with best-of breed services but increasing your productivity while managing your in-house resources intelligently. Outsourcing can help you surpass competitors who have not yet realised the benefits of outsourcing.

• Increase in Business

Outsourcing shows an increase in your productivity, customer loyalty. level of quality, business value, profits, and much more.

Read about: Offshore Holding Company – Key Factors To Consider

Ideal Tasks to Consider for Outsourcing

Stay focus in your specialisation or service industry, evaluate what are the key business objectives and build your business towards that direction. Following are some customary tasks commonly outsourced, especially in corporate organisations :-

• Data Entry

Routine data entry tasks like indexing, scanning, cataloguing and order processing are considered ideal operations to outsource.

• Customer Care

Customer care is of the most preferred outsourcing business. The employment price, offering office space and training, and paying taxes for support representatives can be expensive, whereas an outsourced call centre can be cost-effective.

• Accounting

It is essential for businesses to make sure that they are working with accomplished and competent teams of accountant.

• Chat Bots

Chat bots or virtual assistants can maintain your calendar, aid you in the interview process, and handle other facets of your schedule as well.

• E-mail Marketing

Outsourcing certain marketing tasks can help in establishing a more effective communication with your target market / customers.

Overcoming the Challenges

Offshore outsourcing is experiencing tremendous transformations since the past few decades. Take a glance at some of the main challenges for outsourcing offshore and potential solutions to curb it :-

• Cultural Differences

Cultural impediments can pose challenging owing to both corporate and regional differences. These differences can affect various facets of your business. It can affect the communication, understanding, interpretation, and even the commitment and productivity of the team.

To cater to this challenge, a business which seeks to outsource a project must schedule a training program to offer consultation to its employees related to the organisational and regional cultures and norms of the outsourcing service provider.

• Language Barriers

Often, businesses find communication limitations in terms of language. Regional dialects and accents can be challenging to comprehend initially.

Communication can be enhanced by employing tools for instant messaging and video calling. To collaborate, remote working tools can be utilised. Opt for jurisdictions where English is spoken and practiced by most individuals.

• Data Security

Regardless of the size of the organisation, owning overall security of your data and IP is essential. While operating with remote tech team or remote developers, you need to share a lot of significant information related your business, central operations, and other business assets.

This challenge can be catered to by signing legally binding documents like a non-disclosure agreement with the outsourcing organisation. The threat of data breach gets mitigated when the service provider abides to stringent data protocols.

Labuan for Corporate Services

Foreign investors and Malaysians can choose from a variety of legal structures for their company formations, which includes companies, protected cell companies, limited and limited liability partnerships, and branches. QX Trust team of consultants offers corporate secretarial services curated specially to maintain compliancy in all domains of your business. Book a complimentary session here CONTACT US or via consultant@qx-trust.com to help you stay focused on your business  by outsourcing the necessary tasks which can be managed by the experts at a more cost efficient and timely manner.