While some people might instantly associate the concept of offshoring with the idea of tax evasion or some similar shady financial activity, there are more than a few legit reasons to offshore your company. We are talking about factors like reduced risks, lower average wages and, of course, the fact that you get more options for expansion. Still, here are four most important reasons why you might consider outsourcing your company.
1. A cheaper growth
The first thing you need to keep in mind is the fact that going offshore means that the costs of expansion will be considerably lower. One of the reasons why people move their company (or just open an international office) is due to the lower wages. As your company grows, you will be forced to hire more people and with these lower wages, you will be able to support a larger team with the same or fewer resources. Furthermore, you might also need a bigger office. Lower wages usually come with a lower price of other necessities as well, which means that you will also save quite a bit on the lease and utilities. When combined, all of these things can provide you with a much cheaper growth.
2. Diversifying your company
Another great thing you’ll achieve from offshoring your business is diversifying your company a bit in the eyes of your clients. You see, having a company in a distant country could also reflect positively on your business back home. Having more than one office, operating internationally and employing people coming from different backgrounds are the things that a 21st-century customer holds in high regard. Still, for those who want to benefit from this strategy even further, they might need some help finding the best way to portray this foreign experience back home. One of the ways to do this is by going through a reliable DMC and relying on them to provide you with the most authentic insight for your local target demographic.
3. Better availability
One of the things you need to know if you are a business owner in 2017 is that most of your audience will expect you to be available 24/7. While we aren’t claiming that such a thing is impossible to do from a single location, it is much easier when your business operates in several different time-zones. You see, in the digital environment, your customers won’t have the means of knowing if the person answering them is from Australia, India or France, but it won’t really matter either. As long as this customer support is up to certain standards and the response is immediate, their needs will be satisfied.
4. Entering a new market
Finally, one of the main reasons why people decide to offshore is due to the fact that their business niche back at home may already be oversaturated. Once this happens, you have only two options. The first choice would be to put all your eggs in one basket and try to outperform all your competitors, which quite frankly may require more resources than your company has. Another thing you could do is migrate to new markets where your resources will be much more formidable. It isn’t hard to imagine why a lot of companies opt for the latter.
Conclusion
As you can see, offshoring your business is definitely something worth considering. In fact, it wouldn’t be a far from the truth to say that at one point, offshoring becomes a decision that most companies end up making. Still, whether or not this is the right choice for you at the moment may be quite situational. Keep one thing in mind, though, if you hesitate to enter a foreign market for too long, one or more of your closest competitors may beat you to it.