Outsourcing has become a household term for many businesses, whether these be startup companies or small to medium-sized businesses looking to save up on overhead expenses and labor costs. These companies are able to reassess operational tasks that would greatly benefit them if these were outsourced offshore. Doing so allowed them to scale their operations at half the cost of having to expand their workforce in their own country. From IT development to digital marketing and customer service – dozens of developing countries now offer outsourcing services that provide skilled professionals who work remotely whether as freelance virtual assistants or under a third-party provider vendor who supplies a managed virtual workforce.
If you’ve decided to take the big virtual leap into outsourcing offshore, the next question is where?
Perhaps the best way to answer this question is to first determine your needs and burdens. It is important to note which vendor countries excel in specific tasks so you can get the most out of your investment and tap the right talent.
What To Look For In An Offshore Outsourcing Company?
Finding an outsourcing company offshore that meets your needs and budget can get a little tricky. The growing number of countries out there that have positioned themselves as global outsourcing partners has opened the world of Business Process Outsourcing (BPO) to just about every industry.
Apart from BPOs, also came the boom of freelance virtual assistants who also offer a multitude of services. These include services such as, but are not limited to the following:
- Customer Support
- Data Entry
- Bookkeeping & Accounting
- Digital Marketing
- Creatives
- IT Support and Maintenance
There are other things you may need to consider when addressing your needs to determine the type of service you want to outsource. Do you require voice or non-voice support? Are you going to need automated services? Would you like to hire freelancers or outsource via third-party providers?
When hiring freelancers, you will be doing all the processes involved in recruitment and HR. Third-party providers on the other hand will handle everything from recruitment to onboarding as well as workforce management. They may either employ workers using an on-site work model, remote work, or a hybrid model where employees can choose to work from home on some days and on other days, report to an actual office space provided by the BPO company.
An outsourcing vendor country should be able to meet the following standards:
- Low labor costs
- Government incentives for foreign investors
- Industry growth and revenue rate
- Skilled talent pool
- Customer-focused services
- English proficiency
- Adaptability to Western cultures
- Social stability
- Comfortable and safe workspace
There are many outsourced services you can benefit from. What matters most is finding a competitive edge with the most cost-efficient outsourcing partner.
The Top Countries To Outsource Operations
IT and SOFTWARE DEVELOPMENT
Poland:
India, Ukraine, China and Argentina have all been popular contenders for outsourcing inexpensive software developers for startups and small businesses over the years. But Poland has been gaining competitive ground in providing high-quality yet affordable talent. Polish developers may cost a bit more compared to their counterparts from South America or South Asia. They are also adept in other specializations such as finance. Polish outsourcing companies are reputed to follow stringent General Data Protection Regulation (GDPR) and other EU privacy and data security regulations, assuring clients that data from each project will be kept safe by these laws.
India:
India carries its reputation of being the top leading offshore software development country. Over 250 global businesses have tapped partnerships with India’s local IT companies due to the low costs of initiating software projects. The rates for skilled developers in India are considered the cheapest. India generates up to 2.6 million software developers each year. They are well-trained and can cost-efficiently help companies grow. There is never a shortage of software engineers and developers in India.
Other options: Croatia, Bosnia, Czech Republic, Albania
CUSTOMER SUPPORT/ MARKETING & BACK-OFFICE
Philippines:
There are numerous reasons why the Philippines remains to be the most favored country for outsourcing tasks that directly deal with western customers. The country has rightfully earned its spot as the world’s call center capital. Global businesses are mainly attracted to the Philippines due to its educated and diverse workforce. The country is bilingual. It is ranked the third largest English-speaking country in the world, with 95% of its population able to speak, read and write the English language. Moreover, Filipinos are culturally aligned with the west – having been a colony of Spain for 300 years and under American rule for half a century. It is the most westernized nation in all of Southeast Asia. This makes it easier for western companies to communicate, navigate and manage their remote workforce, and confidently establish a working relationship with customers.
Argentina:
With the Argentinian government offering tax incentive programs that encourage foreign business investments by reducing double taxation, Argentina has become the third-largest telecommunications market in Latin America. Its growth marked 300% over the last ten years as it continues to offer top-quality call center services. During the Covid pandemic, one of the country’s top call centers, Atento, dealt with the Covid-19 hotline in the state of Maryland in the US. It sought to improve customer satisfaction by scheduling timely Covid-19 vaccines and reaching out to vulnerable populations to help plan their appointments. By creating a scheduling program, Atento was able to effectively handle calls by digital means combined with call center staff. This allowed them to efficiently attend to 99% of their customer calls.
Other options: Brazil, Mexico, Ukraine
MANUFACTURING
Japan:
Ranking 3rd in the list, Japan accounts for about 10% of the world’s total manufacturing output. It produced $1 trillion worth of manufactured goods in 2019. The country is well-reputed for the quality of its exported goods, which include, vehicles, computer parts, electronics, and chemicals.
Vietnam:
In 2019, Vietnam ranked 9th in the top outsourcing countries in the world for software development services. But it would seem this country has absorbed a large portion of manufacturing as China continues to lose ground from the US-China trade war. It now boasts of a progressively liberalized trade and investment rule that made it an attractive destination for firms looking to diversify transactions out of China. Vietnam offers affordable labor and shows a more stable society and politics. With tensions growing between US and China, many big western businesses, such as Apple, have moved their manufacturing operations to Vietnam.
Other options: Germany, South Korea, Mexico
Key Takeaways
The decision to outsource any key operations of your company to any country needs careful planning. You must address certain factors that cannot be compromised such as technical expertise and cost efficiency. These factors bring much value to your business and your client’s value chain. There are many competitive offshore outsourcing countries, each offering its own unique proficiencies and attributes. Plan your expenses and meticulously compare service offerings. It is imperative that you verify outsourcing providers to ensure you get what you pay for.
Our mission at Elite Virtual Staff is to grow your business with the help of our valued virtual staffing solutions. We can assure you that our offshore partners from the Philippines are some of the best and most dedicated virtual talents. Interested in taking that next big leap toward growth? Give us a call so we can guide your path and make the right decision.