The debate about the benefits of outsourcing has been going on for decades. Initially, it was done only for the production assembly tasks or core operations. But in the present era, offshoring or outsourcing has evolved and is employing talent for Customer Services, Back Office management, Data Processing, Finance and Accounting, Sales and Marketing Operations, Software Development, and other business functions across the world.
If we were to take a stand in this debate, we would agree with the statement that offshoring is benefiting American businesses. If it had not, why would more and more companies be transitioning to hiring talent from other countries.
So, before we head on to address the advantages that offshoring brings to the table, let’s have a recap of what offshoring actually covers.
Offshoring refers to the business model in which you hire a new team from different geographic locations across the globe. In this model, the client usually hands this responsibility of hiring skilled professionals over to the local third-party service providers of that geographic location.
Offshoring (back office operations, e-commerce support operations, data services and likewise) makes a lot of business sense, not just from an economic point of view, but also offers other advantages like talent pool, infrastructure, and technology.
This practice helps in increasing the output of business along with an improvement in technical expertise. It saves businesses from the stress of searching for talent on their own.
We have discussed a few of the benefits of outsourcing in the above segment. Read on as we detail what you can gain from offshoring data processing services.
Offshoring data processes frees up a significant amount of time for your core business activities and makes for a good competitive strategy. It allows you to focus only on strategic issues and developmental activities. You don't need to hire supervisors or managers to administer them, or provide rent office space.
When you outsource data entry, all your related requirements are managed by companies that are experts in handling data entry, scanning, processing, and indexing your data. These are the benefits of business process outsourcing. Your data is always in good shape and accessible to you whenever you need it.
Factcheck: 57% of respondents in a Deloitte survey said they use offshoring so that they can focus on their core business.
Data entry outsourcing companies are proficient in research and can comprehend and arrange large data sets so that information retrieval is never a problem. That being said, you don't need to worry about talent management when you have a trustworthy offshore partner.
IT outsourcing companies are very particular about the talent they hire. Data offshoring gives you access to a pool of world-class talent who is capable of handling all kinds of data. Highly skilled and experienced data entry operators know how to work productively and efficiently utilize both offline and online data entry solutions.
Factcheck: 28% of survey respondents revealed that they chose to outsource in order to access intellectual capital.
One of the noteworthy benefits of outsourcing is the difference in time zones between the US and India. When you outsource data entry or processing to India, you get the ability to work round the clock and serve your customers non-stop. The moment your employees wind up for the day, your work is instantly carried forward to an offshore company in India.
Further, when you return to your office the next day, there is an impressive amount of work already waiting for your review. Thus, you save a day and your project moves ahead with lightning speed.
Primary and secondary data related research is fundamental to ensure that your marketing and strategic decisions are aligned with customer requirements.
Outsourcing these services like business market research, trend analysis, and competitive business analysis helps you gain first-hand market insights cost effectively.
Further, qualitative and quantitative research are applied to accomplish your business goals. Various means of research are employed in conducting telephonic interviews of top management executives and using online surveys and questionnaires to gather information from professionals to ensure your industry objectives are achieved effortlessly.
Factcheck: Reports say that 17% of businesses felt offshoring drives broader transformational change.
Data offshoring enables you to take advantage of the global labor arbitrage phenomenon. Offshoring data services to India enables you to pay less for skilled labor, payroll taxes, employee benefits, and overtime wages. Because the employees are hired by an offshore company, factors of employee liability like health insurance, employee leaves, etc are not on you.
Moreover, your CapEx (capital expenditure) is significantly reduced because you don't need to invest in office space or buy equipment. Therefore, data offshoring is a smart business decision to cut down on operational costs.
Factcheck: It is reported that 59% of respondents said they outsource as a cost-cutting tool.
Data offshoring is a wonderful opportunity for your business to gain access to state-of-the-art technology. And with the introduction of technological advancement, it has become a cakewalk for any business to keep pace with that of the market.
Whether it is cloud infrastructure, dedicated servers, or on-premise solutions, your offshoring partner understands your requirements more than you do.
You don't have to invest in expensive hardware or software. Your storage data is instantly available; you just have to plug it in and play it.
Factcheck: You would be astonished to know that 47% of respondents agreed that outsourcing solves their capacity issues.
With various sources of data from multimedia devices, software, applications, and corporate information systems, there is an accumulation of huge amounts of unstructured and structured data.
Overwhelmed businesses fail to manage this exploding data load and end up creating silos of unusable information scattered across the organization.
One of the key advantages of data outsourcing is the conversion of this raw data into meaningful information for detailed analysis. Offshoring companies can easily manage meta-data files and make meta-data descriptions so that you can access clean and usable data for reporting and analytics.
Data management is a sensitive task, and if you don't pay sufficient attention to it, you end up losing it, which can prove devastating for your business. Data management woes like data backup, data recovery, data storage, data entry, and data arrangement may take a toll on your day-to-day business activities.
Offshoring data operations allows you to mitigate the risks associated with data management.
Factcheck: 64% of survey participants said that they share security risks with their vendors. Sharing risks is a good strategy to minimize the effects.
Doing business with simplified government policies in emerging economies is a lot easier and more beneficial. On the other hand, offshoring dynamics have also evolved over the years with the emergence of better laws in the interest of both parties.
Intellectual property rights, data protection laws, legal rights, labor laws, data security, dispute resolution, and simplified taxation have made it easier for businesses based out of America to exercise better control and get a real-time view of their data offshoring operations.
Factcheck: 20% of respondents felt trade agreements between countries played a role in their decision.
Offshoring data services allows businesses to take advantage of scalability. Business processing companies with the latest technology, tools, and talent give you access to key expertise areas for specific data projects that help you absorb the costs associated with in-house operations.
Operations that are expensive to handle in-house like data entry, data analytics, data research, and development, are better off with offshoring businesses. Depending on your requirements, offshoring partners are flexible enough to upscale or downscale operations and offer you the benefits of BPO.
Factcheck: 31% felt offshoring helps them increase client revenue growth, while 29% felt it increases provider revenue growth.
Offshoring your data services lets you gain a competitive edge by allowing you to focus on core competencies and improve business productivity. With effortless offshore research, you can ensure that you have all the information you need to support strategic decisions. Leverage time zone differences and keep the work going round the clock.
Make the most of all advantages of BPO, long-term and short-term alike.
Get access to the latest technology powered by superior infrastructure. Better laws, risk mitigation, and business scalability are factors too enticing to avoid offshoring.
So, now that you are ready to make this decision, we would like to introduce you to an expert in this field. Connect with them now and discuss your requirements to hire a skilled team in the shortest time, money, and effort.