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07/13/2020
By
MJV Team

Offshore Outsourcing: what is it, how does it work and what are its advantages?

We live in unprecedented times. The global pandemic and social isolation have changed the rules of the game, as well as put new guidelines on their agendas, forcing them to plunge headlong into Digital Transformation.

It occured out of the blue, nobody expected it. The path forward was to run after losses so as not to lose ground. Large, medium and small corporations were forced to:

  • Restructure processes
  • Realign goals
  • Recalibrate strategies

The current buzzword here is collaboration. So how can we go on evolving and reinventing ourselves? How can we shorten the distances that still remain?

We believe that the crisis has two sides:

  1. Risk
  2. Innovation

Our goal is to be ready to take advantage of opportunities, while still being aware of the risks. Remember: taking small risks, in controllable environments, can bring surprising results.

To deal tackle this scenario, we’ll about offshore outsourcing in this material. Our outsourcing solution aims to increase the productivity of your company, scale processes and enable projects. 

Shortening distances and increasing productivity

The digital world has practically erased the borders that were previously established. People, companies and countries around the world are just just a click away. This process became even more evident in the context of the pandemic.

Here are some statistics to help make this change tangible:

  • In the US, 16 million employees started working remotely in March 2020.
  • Nearly 74% of CFOs plan to move at least 5% of their employees – who work in offices – to permanently remote positions.
  • The Oxford Business Group predicts that the global business process outsourcing sector will be worth $ 250 billion later this year.
  • Business process outsourcing in the Philippines accounts for 10% to 15% of the global Business Process Outsourcing (BPO) market

This new environment and the growing number of successful outsourcing case studies have made entrepreneurs understand that remote work and outsourcing are viable options for keeping their companies growing during the crisis – any crisis.

Considering the difficulty of finding good talent in technology, outsourcing is becoming even more desirable, as it solves a number of problems – from reducing software development costs to the challenge of finding the necessary specialists.

That’s why we created a definitive offshore solution to connect your company to our specialists. With distributed teams and agile management techniques, we match you with the professionals who best fit your project.

Offshore: global collaboration

In moments of crisis, such as the one we are experiencing today, a few questions arise:

  • How to go back to the models we had before?
  • Will there be models available that provide the same competitive prices?
  • Before the pandemic, 30% of the world produced everything in China to lower their cost of operations. Where will these operations go?

Relax! A yes or no answer to all of these issues would be too simplistic. Let’s touch more on that subject.

The model we know is highly dependent on globalization. Any reason that halts globalization – like a pandemic – halts the world as well. Only, in that case, no one has the luxury of slowing down.

This shutdown goes beyond the issues of local economies. Today, there is an almost complete interruption in the production of goods and resources. At least in the molds that we are used to seeing: on a large scale and in China.

That’s where offshore outsourcing comes in. This has been a practice adopted by companies for many years. It consists of hiring services and professionals from other countries to reduce costs and increase productivity.

Note that, at this point, many corporations have an understandable concern for an outsourcing company’s talent base. This is an important factor in choosing an outsourcing partner.

We have a large base of talented employees, who have multidisciplinary backgrounds and familiarity with the best and most modern technologies.

This is our offshore proposal:

Scale the team to accommodate the needs of your demand and your project.

How can companies take advantage of this model during the crisis?

With recent events, companies have been forced to migrate to a new world: a 100% digital and remote one.

Spoiler: over time, we will realize that the fact that we are not physically connected does not impede delivery quality.

We have arrived at the scenario where constant physical interaction is no longer a fundamental factor for the success of a process or project. With that, we can lump in employees, teams, partners and customers. Distributed, decentralized and remote structures are coming into play now more than ever.

Offshore Outsourcing: the new paradigm

We are creating a new paradigm. In the new normal, physical connection increasingly finds itself in the background. Technology is increasingly shortening distances.

What does offshore outsourcing guarantee companies?

  • Removal of paralyze operations
  • Process scalability
  • Exponential results
  • Competitive
  • Dismissal of working teams allocated to the office
  • Decreased costs

In this sense, it provides a delivery model that guarantees:

  • Lower costs
  • Scalability
  • Faster crisis recovery
  • Easier access to experts
  • Ability to focus resources on business development
  • New business models

The new economy is already here! Understanding this change is a priority. Here are some spoilers on what needs to be redesigned:

Technology is the epicenter. It is the one thing that can promote the disruptions necessary for businesses to take the lead in their market segment and even create new markets to lead.

We are moving towards the end of feudal competition. Much of this is thanks to GAFA (Google, Amazon, Facebook and Apple), the 4 giants that dictate the rules of the market when it comes to cutting edge technology and pamper their users with enchanting experiences.

There is no escaping the migration to this new logic:

  • More ecosystem and less company
  • More abundance and less scarcity
  • More horizontal and less vertical

Culture also gains a lot of prominence. It is what makes the transformation happen. After all, it shapes the way the company acts, unseen. Yes, this is DNA; but culture on paper alone does not change anything.

It is worth thinking about a transformation metric that takes us from classical, to post-digital economics.

Start now!

Now that you understand what an Offshore strategy can bring in terms of benefits for your business, what are the next steps?

1 – Get in touch!

Get in touch with our business managers. We can talk about your difficulties and challenges, the details of the project you want to execute, its conception, deadlines, risks, perspectives and prices.

2 – Selecting the best

We select the best talent we have at home to find the ideal pool of employees according to the needs of your project.

3 – Ready? Set? Go!

After our conversation and the talent selection, it’s time to start our project.

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