If you’re a business owner, there’s no doubt you’re always looking for ways to jam more hours into your day and keep more cash in your pocket. Offshoring has become such a popular practice because it was designed to do just that.

If you’re curious about offshoring and how you can use it to grow your business, we’ve collected answers to some of the most common questions we get below.

What is offshoring?

Offshoring is when a company hires workers based in another country to perform the same tasks and provide the same services as local employees, but for a fraction of the cost. 

For example, if you hired a freelancer from Japan to design your logo, then that would be offshoring.

Almost any business process can be offshored. You could offshore your bookkeeping, customer support, digital advertising, or any other task that’s eating up your time.

Outsourcing vs offshoring

If you’ve heard the terms outsourcing and offshoring being thrown around, you may be wondering what the difference is.

First let’s define outsourcing.

Outsourcing is when a company hires a third party to handle one or more of their business processes. If you paid someone to design your company’s website, then that was outsourcing.

As you can see, the only difference between outsourcing and offshoring is the location. When you outsource to another country, that’s offshoring.

Benefits of offshoring

For most of us, the worst part about growing a business is the grunt work. Bookkeeping, invoicing, payroll, and paperwork are all menial tasks that take your attention away from the bigger picture. Offshoring allows you to hand that tedious work off to someone else, so you can get back to finding new leads, keeping customers happy, or whatever else you could be doing to grow your business.

Hiring a new employee could also help you cut those in-house tasks out of your day, but the difference lies in the time commitment. 

With offshoring, you won’t need to waste time sourcing candidates, sorting through their resumes, or interviewing them. Your offshoring agency will handle the recruitment process for you, presenting you with the most skilled candidates to choose from. They’ll also take care of training your new offshore employee, and making sure they stay on task.

But offshoring isn’t just more time-efficient than hiring your own staff. It’s also less expensive. 

For example, wages in the Philippines are typically lower than those in Australia, and the Australian government won’t make you pay payroll tax on the wages of your overseas employees. 

There’s also no need to purchase equipment or allocate office space for your new employee, that will all be absorbed and taken care of by your outsourcing agency.

All of this adds up to a significantly cheaper employee, which means you’ll have more money to invest in other areas of your business. With offshoring, you can save time, reduce overheads, and grow your business risk-free.

Want to learn more about offshoring?

We get it. We did too once upon a time.

Give arnocas a call to discover how you can use offshoring to grow your business, today.