Did you know that the U.S. ranks first in the number of outsourced activities? Roughly 68% of US-based companies outsource some of their operations.
However, there has been a change in the form of outsourcing. A few years ago, offshore outsourcing was quite popular because of its cost-efficiency. However, its drawbacks compelled businesses to shift to onshore outsourcing.
So, what is onshore outsourcing? What are some of the reasons to outsource?
Read on for answers to these questions.
What Is Onshore Outsourcing?
It’s the process of contracting a local company to perform some non-core functions. These include marketing, human resource management, and IT. It’s not to be confused with nearshore or offshore outsourcing.
Nearshore outsourcing involves finding a company located in bordering countries. Offshore outsourcing involves companies outside your country and beyond your borders.
Onshore outsourcing promotes employment within your country. It’s also the solution to the many drawbacks of nearshore and offshore outsourcing.
What Are Some of the Outsourcing Benefits?
Outsourcing allows businesses to focus on their core functions. So, they can deliver better products and services to their clients.
Here are some of the benefits of onshore outsourcing:
You Deal With Less Cultural Differences
Today, many businesses prefer onshore outsourcing because of shared cultural values. Giving feedback may be considered rude in some cultures.
But, this is a normal part of business in the US. So, outsourcing HR services within the country is better than offshore outsourcing. This way, you’ll get fewer complaints from your chosen outsourcing company.
Local Companies Have a Better Market Understanding
The internet has made the world a global village. However, a local company will understand your clients’ needs better.
Local knowledge is crucial when outsourcing marketing services. Remember, what works in China will not necessarily be effective in the US.
You’ll Have More Control Over Operations
Outsourcing locally gives you more control over outsourced services. Let’s say you outsource your IT services. Onshore outsourcing allows you to schedule physical meetings with your chosen company.
It’s easier to discuss what you expect from their systems in a physical rather than an online meeting. Tailoring these systems to meet your expectations also becomes easier.
It’s Easier to Communicate
Communication is vital for an effective relationship between the two parties. But, it becomes an issue when you outsource overseas.
Offshore outsourcing means that you have to deal with different time zones. So, it may be challenging to reach your outsourcing company when necessary.
You also have to deal with language differences. Most companies have to hire interpreters to help with communication. This is both inconvenient and costly.
With onshore outsourcing, you don’t experience these problems. Sharing the same language eliminates the risk of misinterpretation. Also, Sharing the same time zone allows you to reach out at times that are most convenient.
Choose Onshore Outsourcing and Enjoy the Benefits
Sure, offshore outsourcing carries a certain cost-saving appeal. But, you’ll realize that onshore outsourcing is better when you look at the bigger picture.
Onshore outsourcing helps ensure you’re on the same page with your chosen company. It also gives you greater control over operations. So, in the end, your company runs more smoothly.
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