What Industries can Benefit from Offshore Outsourcing

Many business and organisations know about Offshore Outsourcing and know they need to integrate it into their overall strategic operations. Since the explosion of offshore outsourcing companies in the latter part of the 20th century, the number of companies forming strategic partnerships with offshore outsourcing providers has also increased.

Today, many companies across different industries send not only the minor aspects of their business but even their core activities as well, such as customer service, human resources, and sales. Outsourcing is now a crucial factor in any organization who aims to achieve operational efficiency without compromising they provide to their clients.

These are just a few of the industries that benefit from Offshore Outsourcing:

  1. IT

The 2016 Global Outsourcing survey by Deloitte reported the IT as the leading legacy function being outsourced these days, representing 67% of the offshore outsourcing market. While reducing operating cost and improving company focus remain as the top reasons to outsource for IT companies, access to the latest technology is another motive why many of these companies choose to take the offshoring path these days.

In the IT startups scene, the rapid development of the landscape, along with the lack of skills and experience on other aspects of business, has become the top reasons why many startups cease to operate just a few years after they were founded. In fact, statistics state that only 37% of IT start-ups are still operating after four years of operation.

Through outsourcing, IT companies can access resources that they cannot access by themselves due to financial restrictions. By providing them with IT experts, support staff, and latest technology, offshoring allows these companies to be on par with their bigger competitors, and focus on developing their business – all without the need to augment their infrastructure on-site.

  1. Finance

Finance

In the same report by Deloitte, it was revealed that the finance sector represents 27% of the outsourcing market. Despite the growth in this sector in the last recent years, financial institutions have been put under increased pressure by the growing expectations of customers as well as by the various regulatory authorities.

These pressures are driving changes in the way financial services are looking at offshore outsourcing as part of their strategy to address these market changes. Today, financial services institutions see offshoring as a means of cutting cost, and a strategy that will help them achieve their long-term business goals – such as equipping new capabilities, and reduced capital investments in infrastructure, and improved services.

  1. Healthcare

Like the financial sector, the healthcare industry has always been facing extreme pressures from their clients as well as from various regulatory bodies. Patients have always demanded superior service from their health care providers, while a number of strict regulations and standards has also been put in place to ensure the security of protected healthcare information (PHI), and reach the maximum efficiency of healthcare providers.

To achieve such results, retention of focus is a must. That’s why many healthcare institutions these days seek the help of offshore outsourcing companies on conducting some of their backend tasks, including accounting, customer service, payroll, IT, and other areas which are not necessarily essential to the health care service.

In doing so, they lessen the risk of non-compliance, since offshore outsourcing providers know very well the various regulatory compliance in the healthcare industry. This helps them avoid the time-consuming path of studying legal and industry standards, allowing them to save more time and be more confident about their compliance status knowing that experts are doing their jobs for them.

  1. Retail

From managing financial records to planning, executing, and monitoring sales and marketing campaigns, retailers juggle multiple tasks on a daily basis essential to maintain their competitiveness in the market.

With the tough contest among companies in the retail sector, effectiveness of these aspects must be achieved – which is most retail companies are turning to outsource some of their essential task, including email marketing, social media management, customer support, and any process drove tasks relevant to achieving maximum efficiency in their business.

For instance, many online retailers choose to outsource their inbound sales and customer support these days to ensure steady revenue growth and achieve better customer service. In doing, even retail companies operating on a shoestring budget can compete on the same playing field as their bigger competitors.

  1. Architecture and Engineering

Architecture & Engineering

Architecture and Engineering are two of the booming industries today, as more and more private organizations and government bodies enhance their operations through infrastructure projects.

But with the increasing cost to engage qualified and skilled engineering and architecture specialist in the local labour market, along with the increasing need to speed up delivery of company strategy requirements, more and more engineering and architectural firms turn to offshore outsourcing companies to augment their present workforce.

In doing so, companies will not only be able to complete their projects on-time, but also access qualified engineering resources with rare skills which can even improve the quality of their final deliverables.

  1. Freight Forwarders

Like any other industries, freight forwarding companies face several challenges that they must constantly navigate. Such challenges include strong market competition, strict government regulations, and changing global demand. To face these challenges, many have already partnered with offshore outsourcing providers to ensure their growth and flexibility in their day to day operations.

As an industry that crunches a lot of data and information, freight forwarders can benefit from offshore outsourcing through a more efficient IT process, paperless work environment, and faster processing of non-core functions such as payroll accounts payables and accounts receivables.

With these benefits, freight forwarders can lower the cost of their freight invoice, thus making them a more viable options for their clients – ensuring their competitive place in the market.

These are just a few of the industries that can benefit from offshore outsourcing. If you want to learn more about how Global Outsourcing can help your company grow and succeed, contact us today by calling 02 8916 6469.