Benefits of Offshoring

Benefits of Offshoring

Offshoring as a business model has been around for many years. The world’s leading organization have discovered the benefits of offshoring early on and moved part of all their business operations to different countries.

Offshoring can make any organization realize these benefits:

Business Growth

Offshoring reduces the cost of the most expensive element in operation which is the labor cost. Savings due to offshoring are estimated between 30% – 80%. The savings are significantly higher as the number of staff hired and their experience are increased.

Access to skilled staff

In many cases expertise in certain business areas are

Greater business availability
Reduced Risk
Better Control

Offshoring is simply the process of getting work done in another country. You take an activity and move to an offshore location, but that activity is still completely managed within your company, so you control the outcomes.

This model of Business Process Outsourcing is not new globalized companies around the world have used it for many years. However, due to the growth of the Internet and advancement in communication technology, offshoring has now become more accessible and a suitable option for business owners in the SME space.

There are many benefits for moving business functions offshore and not limited to just the primary rationale of reducing costs.

Benefits of Offshoring

Here are 5 benefits of Offshoring:

Business Growth

Offshoring allows you to reduce one of the most expensive parts of your business, the labour costs. Freeing this up will allow you to reinvest funds in to your business and give you the opportunity to expand your offerings and service. Essentially working on your business rather than in your business.

Access to Staff

This model gives you access to a young and vast pool of talent. In particular to English speaking foreign countries, who are highly skilled and university educated. With the current pressure to find employees with the right skillset in already developed countries, implementing offshore teams will compliment the existing staff. The wide skill availability for knowledge-based processes through offshoring becomes an advantage for any business looking to fulfill specific requirements.

Greater Availability

Having a different time zone and a workforce ready for 24×7 operation, gives you an outstanding opportunity to support your clients when they need it and fulfill their ever-changing needs. This results in a better level of service and higher level of customer experience with quicker and direct contact to your business. Increasing the competitive edge in your industry.

Reduced Risk

To have multiple teams in different countries helps to reduce your risk, provide a greater marketing opportunity and allows you to support your clients when they need it.


Many businesses may not want to relinquish control of part of their operations and production to an external party. Offshoring allows you to have dedicated staff to work for your company only. You provide the direction, train the staff and everything is done the way you want it to, which leads to accountability internal of the business.

how can we help you?

Contact us at Lean Business Solutions by submitting a business inquiry online or raise a call back request, we will get back to you.