Offshore Staffing: The Global Business Strategy You Need to Know

Offshore staffing, the practice of hiring employees overseas to perform some business operations, has been around for decades.

“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.” – Lee Kuan Yew, former Prime Minister of Singapore Today, Offshore staffing is an effective business strategy for large companies such as Amazon, Apple, Ikea, and American Express, and can benefit small businesses as well. Here are seven key benefits of offshore staffing that make it a compelling business strategy:

1.    Addressing the Talent Shortage: Offshore staffing can help address the global talent shortage and optimize business functions for improved efficiency.

2.    Scalable: Offshore staffing is the most scalable business model, allowing companies to maximize their returns on investment while providing the highest work standards.

3.    Highly Cost-Effective: Offshoring allows companies to reduce real estate, hiring, and training costs significantly while accessing a global pool of professional talent.

4.    Quality Hiring: Offshore staffing helps businesses access a global pool of skilled professionals that can match their quality standards, increasing their chances of success.

5.    Facilitates Round-the-Clock Business Operations: With employees across different time zones, businesses can operate round the clock, increasing work capacity and reducing project turnaround time.

6.    Opportunity for Going Global: Offshore staffing establishes a global network of employees, opening new opportunities for international markets and resources.

7.    Allows In-House Teams to Focus on Core Competencies: By offloading mundane tasks, offshore staffing frees up in-house teams to focus on core business tasks, such as marketing strategy, growth strategy, and business development.

Offshore staffing has many benefits for businesses of all sizes. With its ability to address talent shortages, provide scalability, and offer cost savings, businesses can leverage this strategy to access skilled professionals worldwide and establish a global brand.

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Tips for Establishing a Successful Offshore Team

Enhance productivity, minimize expenses, and accelerate expansion by incorporating a skilled offshore team from the Philippines and other offshore destinations alongside your local staff. Explore these valuable insights to maximize the potential of your offshore team.

Promote Inclusivity:

Integrate your offshore team seamlessly into your company culture by treating them on par with your onshore employees. Ensure their participation in meetings and involve them in pertinent company communications. Remember, although employed by Pivotal Workforce Solutions on record on your behalf, your dedicated offshore team is fully committed to your company’s success.

Foster Personal Connections:

Build a personal rapport with your offshore team, just as you would with your onshore staff. Take an interest in their families, hobbies, aspirations, and recreational activities. Understanding your offshore team on a personal level fosters seamless integration and boosts overall productivity and success.

Cultural Alignment Matters:

Gaining insight into Filipino or other offshore destination cultures is essential for harnessing their full potential. While proficient in English, some Filipinos may not comprehend colloquial language. Moreover, as predominantly Catholic, they observe Sundays and Christian holidays as non-working days. Considering their lengthy commutes

on public transportation, a slight delay to work is not uncommon. Understanding these cultural nuances ensures better collaboration and productivity.

Foster Onshore Team Support:

Encouraging a sense of camaraderie between your onshore and offshore teams leads to a collective performance boost. When your onshore employees perceive the offshore team as supportive collaborators rather than replacements, it enhances overall productivity levels.

Ensure Fair Compensation:

While offshore salaries are typically 60% of your onshore team’s pay, it’s vital to value the expertise you invest in. Avoid hiring solely based on cost and prioritize quality by selecting the best candidates within your budget.

Craft Clear Protocols:

Ensuring comprehensive training for your offshore team mitigates the likelihood of misunderstandings and errors. Develop explicit systems, processes, and training modules to facilitate a seamless journey toward success.

Acknowledge Team Contributions:

Treating your offshore team with the same appreciation as your onshore team, offering positive feedback and encouragement, fosters robust working relationships and heightened productivity. A simple “Thank You” can significantly bolster team cohesion and amplify their dedication to your business.

Maintain Daily Communication with Your Offshore Team:

Designate a local representative to regularly engage with your offshore team, ensuring that issues are promptly addressed and everyone is on the same page. Effective communication protocols are essential for remote teams, facilitating smoother integration. Participating in team-building and training events alongside your offshore team fosters closer ties and streamlines integration processes. 

Encourage an Open Door Policy:

Foster a welcoming environment where offshore staff feel comfortable asking questions and familiarizing themselves with your company’s policies and culture. Cultivating an open-door policy without judgment aids in their assimilation, enabling a quicker understanding of the company’s mission and goals.