The Main Types of Offshore Staffing

What Is Offshore Staffing?

 

Offshoring is the relocation of business operations from one country to another to search for growth opportunities and productivity.

Offshore staffing, also known as offshore staff/employee leasing, involves seeking staffing solutions overseas for various businesses ranging from small, medium enterprises and to corporations. The significant difference with local staff hiring is the process of recruitment. Business Process Outsourcing (BPO) involves hiring a third party to handle certain process / non-primary activities that the company needs to operate.

In offshore staffing, an offshore company is tasked with setting up the business and running its actual operations. When a client wishes to hire additional staff to manage increased business processes, all they have to do is contact an offshore staffing provider. Therefore, the provider will handle the recruitment process and the setup, taking the burden off the client. The client will select a provider and get an offshore staffing quote.

There are several services for which you can consider offshore staffing. These include administrative services, IT, accounting, bookkeeping, finance management, debt collection, loan processing, digital marketing, data analytics, call center services, control account reconciliations, cost analysis, and CFO services.

Types of outsourcing

Outsourcing can be divided into three kinds of BPO; onshore, offshore, and nearshore outsourcing.

Onshore outsourcing involves outsourcing a portion of your company’s operations to another firm within your country or region of residence. It is a viable option if you don’t have the resources (including staffing) or office space to accommodate an additional team. You can also consider it to cover for a sudden resourcing requirement following a product launch or a sales campaign for the business. Some of the firms may require the feel of new talent in their operations, the usual or newly-incorporated processes, from the same time zone or geographical area. Firms targeting growth in productivity or expanding their operations may consider onshore staffing to efficiently accomplish tasks and keep operational costs moderate while raising the profit margins.

Nearshoring involves outsourcing your tasks or contracting some of your business operations to a neighboring country. It is efficient and cheaper given the proximity to the mother’s office.

In BPO, there are two categories based on the type of work being outsourced. These are:

Front office outsourcing deals with the in-house necessities of business-back-office outsourcing, which involves external business operations such as marketing and tech support services.

How Offshore Staffing Works

 

Offshore staffing is adopted in a  business to increase efficiency and capacity in carrying out its operations.

An offshore staffing firm manages recruitment by establishing documents and job profiles, and descriptions for the posts/ staff required to handle the task at hand.  Good offshore staffing providers have capable instruction designers and HR professionals in their corporate team who manage quality tailoring of the gap needs and manage standard hiring systems.

Upon appointment of key personnel, offshore staffing providers handle contract management for the task force. The providers also manage the setting up of the offshore office.

Some clients may request involvement in the offshore staffing provider’s activities, such as initial screening or conducting interviews for the key experts and the daily running of the business operations. In other cases, the clients may choose to delegate the outsourced team’s day-to-day operations to the offshore staffing company. It is all dependent on the business’s choice, in this case, known as the client.

The client chooses to be involved in management, such as administrative roles, they need to select a viable communication with the offshore staffing team, which can be via Zoom, Skype, E-mail, or phone calls.

Take an example of outsourcing accounting services. The client works closely with their Micro Sourcing account manager in operations management. Offshore staffing providers will set performance targets, key performance indicators, and reporting mechanisms for your offshore staff. Once operations commence, the providers support functions needed to help the client run an effective offshore team.

Offshore staffing offers you complete control of the entire business operations while realizing up to 70% savings on the operational costs. It is a cost-effective way of expanding your workforce with minimum risks and establish your business continuity plans while maintaining quality personnel. It is a reliable measure, especially in the Covid-19 era, where working remotely is highly recommended.


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