As the world started navigating its way into the new normal in 2021, another phenomenon termed ‘The Great Resignation’ started making headlines. Across the globe, companies from all sectors started facing unprecedentedly high rates of resignation across all sectors, creating major skills shortages. As a result, many employers are turning to offshore outsourcing to address these skills shortages and the cost of offshore services is expected to reach $ 19.5 trillion by 2025 (Outsource Accelerator, 2021).
Offshore Outsourcing can prove to be a true game-changer, transforming the traditional ways of doing business. Outsourcing companies are well-equipped to provide the required specialized knowledge, skills, and resources to seamlessly integrate into their clients’ operations, systems and culture in order to create value and keep up with the challenges of disruptive times.
What is Offshore Outsourcing?
As per Outsource Accelerator, Outsourcing is ‘the process of leasing skilled resources from third-party providers’ and is divided into two main categories, namely onshore and offshore outsourcing. Onshore outsourcing consists of outsourcing business processes to a provider in the same country where the business operates, whereas offshore outsourcing means working with a provider located in another country.
Offshore Outsourcing or Offshoring, is often perceived as a cost-reduction strategy to lower labour expenses. However, there is much more value that offshoring can bring to a firm, such as delivering solutions that digitally transform the business, value creation and improve operational efficiency. Back office functions such as Accounting, Bookkeeping, Customer Service and IT Service Management, are common functions that are outsourced, hence allowing the client to focus on its core activities. Time and resources are saved and redirected/reskilled to tackle more complex tasks.
Key Benefits of Offshore Outsourcing
Let us now have a look at some of the key benefits of offshore outsourcing, which can prove to be a game-changer for your business:
✅ Fast access to a wide pool of skills and talents
The hunt for expertise is salient in today’s corporate world, and the hiring process can be time-consuming and strenuous. With outsourcing however, businesses can instantly have access to a wide pool of experienced and highly skilled talents, at a competitive cost and in lesser time. Mauritius is the perfect offshore location as its population is educated and highly skilled. Most Mauritian citizens are bilingual (English and French) while a significant number also speak more than two languages.
✅ Standardisation and Process Efficiency through quality systems
Ensuring quality when outsourcing is a main concern for any business starting the outsourcing journey. Quality is about meeting clients’ needs and expectations around service level agreements and measurable quality metrics with the aim of not only reducing errors but also continually improve performance. Reputed Outsourcing firms have developed quality standards and processes that are implemented to continuously monitor their performance.
✅ Information Security & Infrastructure
There are numerous benefits linked to having an outsourced IT provider as they have access to all the latest trends and developments allowing them to incorporate new technologies and trends into their client’s business in real-time. They provide their expertise to their clients in areas such as:
- Information Security against latest network threats
- Audits and tracking of events
- Backup and recovery strategy
- Compliance to data and information security/privacy regulations (ISO / GDPR)
Outsourcing companies adopt the right framework based on the size, nature and operations of their clients to provide the right safeguards in relation to Information Security and privacy
✅ Better Risk Management
Governance and operational risks are two major issues that rank high on the agenda of C-Suite executives, especially in heavily regulated industries like banking and the healthcare sector, when considering outsourcing. Leading outsourcing companies typically use a comprehensive governance and risk framework to identify and minimize potential operational risks.
✅ Save on Resources
It is not surprising that many employers are turning to outsourcing nowadays. CFOs particularly, are under pressure to increase productivity and improve efficiency. The most viable option to saving costs would be to outsource the non-core processes to an offshore outsourcing company. The cost to outsource work varies in each country. Time zone and demographics also play a key role in deciding where to outsource. Digital transformation can also help to lower operating costs. As per the Everest Group, a US-based IT advisory firm, “digital transformation saves the client money in the form of lower operating costs, we do see an appetite to move forward,”
How BDO Solutions can work as a game-changer for you
BDO Solutions provides a range of offshore outsourcing services from Bookkeeping, Accounting and Financial Reporting to managed IT services around infrastructure, cloud, security and technical service desk support. Our capabilities enable you to focus on your core services while our team of 600+ experienced professionals bring efficiency with continuous performance improvements. Together with you, we deliver plug-and-play solutions for value creation and increase your operational efficiency.
We streamline and re-engineer your processes with automated solutions that follow strict internal control, while saving costs. We drive consistency and quality in outsourcing operations, enabling us to be responsive to your size and location needs. Our activities are metrics driven with a proactive Governance approach to actively manage risks and service level obligations via a Monthly/ Quarterly Business Review.
BDO Solutions is a Business Services & Outsourcing company located in Mauritius and forms part of the international BDO network, which extends across 167 countries and territories, with 97,292 people working out of 1,728 offices.
>>Are you ready to start the outsourcing journey? Book a free session with our experts to explore together your outsourcing options. Call us on +230 460 9999 or email us on bdsol@bdo.mu