Why Companies Do Offshoring and Outsourcing?
1 min readMar 27, 2024
- Cost Efficiency: Offshoring to countries with lower labor costs can significantly reduce operational expenses for SMBs, allowing them to remain competitive in the market while maintaining profit margins.
- Access to Skilled Labor: Offshoring can provide access to a larger pool of skilled professionals who may not be readily available or affordable locally. This is particularly beneficial for SMBs requiring specialized expertise in areas such as software development, customer support, or digital marketing.
- Time Zone Advantage: Offshoring to countries in different time zones can enable SMBs to provide around-the-clock customer support or streamline business operations by leveraging the extended working hours.
- Focus on Core Competencies: By outsourcing non-core functions such as IT support, accounting, or administrative tasks, SMBs can focus their resources and efforts on core business activities, thereby enhancing productivity and innovation.
- Scalability: Offshoring offers SMBs the flexibility to scale their operations up or down quickly in response to changing market demands without the constraints of hiring and training additional local staff.
- Global Expansion: Offshoring can serve as a strategic entry point into international markets, allowing SMBs to establish a presence in foreign countries and cater to a diverse customer base.