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Offshoring 101: The Facts Behind the 7 Biggest Offshoring Myths

Introduction

Offshoring is the process of conducting business operations outside of the country where the business is located. According to The Week magazine, its prevalence dates back to the late 1970s and was initially limited to manufacturing. However, this changed when the internet enabled companies to hire workers overseas for various white-collar positions.

Today, offshoring is slowly becoming a norm for many businesses due to its advantages. Firstly, operating from another country can be very cost-effective, especially when you outsource specific business functions, such as content writing or web development, to a local third-party provider.

Furthermore, more lenient labor and environmental laws, access to natural resources, and opportunities to hire diverse talent are other reasons why many organizations have started offshoring for specific roles.

Have you considered hiring one of the best offshoring companies in the Philippines to maximize profits but are hesitant? Q2 HR Solutions, an offshoring agency based in Manila, is here to debunk myths and misconceptions!

 

Common Myths and Misconceptions About Offshoring 

Not every negative thing about the practice of offshoring is true. This section lists some of the most common offshoring myths and misconceptions and shows why they aren’t accurate.  

 

Communication Will Be a Challenge 

Understandably, when collaborating with an offshore team, the ease of communication can be a concern due to time zones, language barriers, and the remote work setup. Luckily, this is no longer an issue for many offshoring companies and the foreign businesses they work with.

Workers from primary outsourcing countries, such as the Philippines, are highly proficient in English. Moreover, employees often adjust to the time zone of their clients, enabling them to collaborate with their coworkers despite the time difference.

 

Data Security Is Compromised

Data breaches and sensitive information leaks are another concern surrounding offshoring. Many companies are concerned about data safety and the potential ramifications of any breach, such as financial loss and legal complaints.

 However, the belief that data security is unsafe in offshoring is a myth because offshoring companies depend on their reputation. Thus, it will backfire if they leak the company data of the organization that hired them. More importantly, this won’t happen if you carefully vet the offshoring agency you work with.

 

Offshore Employees Are Not That Skilled

Many companies outsource several business operations to an overseas third-party provider due to lower employee costs. This has led to the belief that offshore employees are not up to par with other workers regarding skills and experience.

However, this is a huge misconception! For instance, offshore staff in the Philippines are highly qualified, as evidenced by the number of big-time companies that outsource to the Philippines, such as Google, Facebook, and Wells Fargo. Besides, hiring skilled overseas employees again boils down to choosing reputable offshore agencies.

 

Offshoring Only Benefits Large Companies

Perhaps you haven’t considered hiring offshoring agencies because your business is still considered a small-to-medium enterprise, believing that this practice only benefits larger companies. Again, this is another myth. Even smaller enterprises hire and benefit from hiring offshoring agencies in the Philippines, as many are flexible and offer services that fit the needs and budgets of smaller organizations.

Letting an offshore team handle some of your operations means you’ll be able to allot your time and focus on more critical business functions, allowing you to grow your company faster. It can also help you cut down on employee costs without sacrificing the quality and quantity of output you can get from a highly skilled workforce.

 

Offshore Teams Are Difficult To Manage

Similar to communication concerns, some people are hesitant to try out offshoring due to the belief that teams based abroad are difficult to manage owing to differences in culture and time zones. The truth is that managing teams from another location, even a different time zone, is very feasible due to the Internet and various collaboration tools.

The key is to make sure that you clearly communicate your company’s policies and goals and take steps to motivate your offshore team. See to it that you do not micromanage. Give realistic timelines, get feedback from your offshore workforce, and tell them you take their concerns seriously.

 

Offshoring Is Only Temporary

Do you only see offshoring as a temporary solution to your company’s needs? Many people think this way because they are unaware of the other services offshoring companies offer. For example, financial consultancy and other strategic services can benefit your business long-term.

Nowadays, most offshoring companies even seek long-term clients, too. This means that such organizations are confident that they can provide services that keep up with their client’s needs, which become more extensive and complex over time.

 

Reliable Offshoring Companies Are Rare

Finding a trustworthy offshoring company you can trust isn’t as hard as looking for a four-leaf clover. Again, the fact that large-scale companies, such as those mentioned earlier, outsource their operations overseas proves that reliable offshoring agencies are more common than you think. The key is to search for companies in countries that are well-known for their outsourcing capacities, such as the Philippines.

Moreover, finding an offshore partner you can work with all boils down to a couple of things. First, identify what you need. Doing this will help direct you to the offshoring agency that fits your organization’s goals and requirements. Second, check and evaluate different offshoring agencies by reading client testimonials and inquiring about accreditations and certifications.

 

Speak With a Reliable Offshoring Company in the Philippines

Speaking of reliable offshoring companies, here is one that has been in the industry for over two decades: Q2 HR Solutions. We are a fully integrated HR solutions and recruitment company with a presence in Asia, North America, Europe, and Australia. 

Having served a broad list of clients over the years, we know what it takes to provide a highly efficient and knowledgeable offshoring team for your business needs. Schedule a meeting today for additional information on how one of the best offshoring companies in the Philippines can help you. You can also visit our upcoming HRIcon event this September 2023 to learn more. See you there!