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Pros and cons of offshore outsourcing

2019-05-17 Business No comment

Today, hiring employees from neighboring countries to lower wages is very popular. Big companies think this is an ideal choice compared to paying higher wages to people employed in their own country.

This practice is known as near-shore outsourcing or a simple definition of access to work or services done by neighboring countries rather than in your own country. Just like the two sides of each coin, it has its advantages and disadvantages.

Polling station

Offshore outsourcing offers the advantage of working in the same time zone, which is a very critical factor, especially when online interaction is required. At least, no one has to stay up late or get up early; therefore, alleviate the pressure on both sides. Work is done at the same time and the entire project is better coordinated.

Geo-agents mean travel is closer and cheaper, so companies can regularly access their outsourcing partners. In addition, there is a commonality between the two cultures involved. Since both countries have similar cultural backgrounds, coordination and communication are easier because people are most likely to speak the same language; therefore, the problems caused by cultural diversity are reduced.

Visas are an important consideration for business trips, as it may take several times a year to move from one country to another. In coastal countries, visas are not required for travel. The only thing you need to make sure you carry your passport and ticket before boarding.

Disadvantage

One shortcoming will fall in the outsourcing country. Often, technical work is an outsourced position, so graduates in this field have fewer employment opportunities. Similarly, pay levels will be lower because they are not competitive with foreign workers and they will do their jobs at cheaper labor costs.

Second, there may be potential copyright and patent infringement issues in neighbouring countries that are difficult to implement. Similarly, there are problems when information is safely passed to people in other countries, as this may not be strictly monitored in the country from which it came.

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