How Offshoring Boosts the Expansion for Big and Small Companies

How Offshoring Boosts the Expansion for Big and Small Companies

Daniel Hall 17/06/2022
How Offshoring Boosts the Expansion for Big and Small Companies

Offshoring has become a popular business strategy both for small and big companies.

We will see here how can offshoring help different kinds and sizes of organizations to boose their business. We will also examine the offshoring pros and cons and how you should evaluate its suitability for your company. Let’s dive into this.

What is Offshoring?

Offshoring is a term that people can understand in a variety of names. But it means that you transfer part of your operations to another country. It can also mean hiring an offshoring agency to manage a team for you abroad. The latter option can have a higher price but is less time-consuming and energy-consuming. The third option is to employ an already established team in another land and organization to complete projects and tasks for your company. 

What Are the Main Benefits of Offshoring? 

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Offshoring is an empowering option for both big and small companies. Let’s dive into what makes offshoring such a great option. 

It Reduces the Costs of the Company

Offshoring enables companies to work with professionals located in countries with lower living costs, which means there is a significant decrease in labor costs. 

This benefits big corporations because they manage multiple teams, and offshoring can reduce the costs by up to 50%, and if the teams are IT specialists, this means significant money. Corporations can direct these resources to other company needs, such as marketing or product development.

Small companies and startups often operate on a small budget. That’s why they cannot usually afford to work with the best talents. But offshoring enables them to tap into a pool of excellent professionals for a reduced price. This can result in faster growth for them. They can put their product to the market or increase their effectiveness, which will result in thriving.

Access to Highly Qualified Experts

Offshoring enables big companies to find highly qualified professionals they cannot access in their own country. It also allows startups and small companies to leverage such top-ranking superstar specialists at a lower cost and have an opportunity to grow and scale more quickly.

You Can Leverage Different Time Zones

This enables your company to have a constantly engaged team in forwarding your projects. If you work only in one time zone, you have a team from 5 to 9. But if you have teams in different time zones, you can provide services and customer support at multiple shifts or night. 

Lower Taxes

There are many incentives that offshoring companies can benefit from. Combining this with the reduced labor cost benefits makes offshoring an efficient strategy for both small and big companies. 

What Are the Drawbacks of Offshoring?


When considering a business strategy that could have a powerful impact on boosting your business, you should look at it from every angle. And, of course, as with all things in our world, there are two sides. So let’s look into some challenges that sometimes emerge for the companies that do offshoring. 

Little Control 

When you hire a team that another company manages, you cannot control how they treat or pay the people working on your project. This might influence their results and can also not be aligned with your company culture and values. You also cannot choose the people that are working on your project. They might not have the same vibe or frequency level as your product or organization. This might result in a frequent turnover and misunderstandings. 

How to avoid that: 

Many offshoring agencies are adopting strategies to provide offshoring companies with teams aligned with your company values. They also ensure that the team is managed according to your organization’s standards. Yourshore from Turnkey is one such model. You can explore similar models that will guarantee transparency and alignment. 

Lower Quality Work

When you do not check carefully on the agency or the team in advance, you may end up with a lower quality performing personnel. This might cause you to spend even more money if you did not do offshoring altogether. 

How to avoid that:

You must evaluate in advance and ensure the agency and team standards are high enough for your company level. You can examine case studies, company documentation, SOPs, and available tools and premises.

Cultural Misunderstanding

When you hire a team located in another land, there is a barrier that comes from speaking another language and being immersed in another culture. They might have a different understanding of deadlines or instructions, resulting in losses for the company. 

How to avoid that: 

Make sure you have a strategy for managing the communication with your team that makes your instruction very clear. Engage with your team reguaraly though an efficient communication tool where you conduct regular gatherings to clarify all aspects that might affect your company processes. 

In Conclusion


Offshoring is one of the most efficient strategies for you to use when you want to expand your business. No matter your enterprise's size or your employees, you can benefit significantly from that powerful tool. But as we saw, you must use it wisely and cautiously. You need to research and choose which agency or team you can trust your business or project with. This article gives you some valuable tips so you can start your query. Let us know the result of your discovery and how offshoring is working for you! We’d love to hear your story!

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Daniel Hall

Business Expert

Daniel Hall is an experienced digital marketer, author and world traveller. He spends a lot of his free time flipping through books and learning about a plethora of topics.

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