4 Advantages of Offshoring Company Operations

4 Advantages of Offshoring Company Operations

The world is currently in a state of hyper connectivity, paving the way for new and lucrative business opportunities. Thanks to the introduction of seamless video conferences, companies can now effectively transfer select operations to a different country, through a process called offshoring.

Why would a business break off a part of its workforce just to send it offshore? Here are four advantages that businesses with offshore operations, reap:

1) Significant Tax Reductions

First-world countries enjoy a lot of benefits, which includes a high standard of living. However, those standards don’t come cheap, which is why these countries suffer from high tax rates. This can be problematic for bootstrapping SMEs, as these extra expenses stifle their growth, wasting potential economic development. Offshore companies in developing countries on the other hand scale significantly quicker thanks to lower tax rates.


2) Increased Efficiency

Offshoring jobs to developing countries also allow companies to increase their efficiency thanks to the relatively low income of the professionals that live there. The reduced overhead cost that results from this, enables businesses to reinvest their increased earnings to scale even faster. In addition, developing countries usually have high demands for job vacancies making staffing solutions unnecessary.


3) International Exposure

The global market has become a massively influential factor to virtually all business decisions. This is most apparent in the film industry in which a movie can absolutely bomb at the U.S. box office and still make huge profits in China.  

While new advances in internet marketing allow businesses to penetrate any international economy that they so choose, having a foothold in a partner country gives those who engage in offshoring an edge over the rest.


4) Global Connections

Crowdfunding has opened the gates of the business world to anyone with a good idea and a stable internet connection. While it is now easier than ever to dip your toes into entrepreneurship, the over saturation of budding businesses has revealed the market’s vicious and unforgiving side.

Business partnerships are now more important than ever and having an offshore call center opens up more opportunities for international partnerships. Risk management is the name of the game right now; a lone company can easily get washed away by the raging rapids of technological progress, but a coalition of companies can forge a stable foundation that they can build upon.


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