Did you know? The offshore staffing agencies enable businesses to leverage their cost advantage by saving 40-60% on hiring compared to onshore recruitment. Offshore staffing solutions provide an excellent opportunity for companies to upgrade their IT talent at nominal rates. The Great Upgrade offers a window of opportunity for mid-to-large enterprises to reimagine recruitment.
Even though the threat of recession looms, the staffing industry is predicted to bring revenues worth $185.5 billion to the USA by the end of 2022, according to Staffing Industry Analysts. These numbers will surpass the pre-pandemic market of $152.8 billion in 2019.
With employee lay-offs, rising inflation, and currency volatility, all signs indicate that we are not far from another recession. Bigwigs such as Microsoft, Tesla, Twitter, and many others have started laying off employees and have either slowed or frozen the recruitment process.
If the Great Resignation of 2021 or the pending recession makes hiring more complex and costly, offshoring IT services are the way forward. The Great Upgrade is the best way to deal with such dire situations.
Staffing agencies play an instrumental role by providing your company with the most suitable offshore IT talent. This is where Mastech Digital’s IT talent solutions program steps in by hiring talented candidates from India with proven skills, experience, business acumen, and the ability to work independently. It’s probably the right time to invest in offshore staffing and find a like-for-like replacement, but at an affordable rate.
How does Mastech Digital’s offshore staffing help?
Offshore staffing can provide your company with several benefits, including lower costs, increased efficiency, and access to a larger pool of talent. Mastech Digital is a better-known offshore staffing service provider, hiring offshore talents with a proven track record for its clients. The company has global sourcing teams focusing on providing an IT workforce in India.
Let’s take a closer look at each of these benefits and how they can help your business succeed.
- Cost-Effective: Our Global Delivery Model is experienced and helps you engage with resources with greater efficiencies. We provide a great way to cut costs for your company. One of the top benefits of offshore staffing is that it helps you to avoid the hassle and expense of training new employees. The staffing solutions hire IT talent from countries with lower labor costs, saving you money and improving efficiency for your company.
- Diverse Talent Pool: Utilizing a recruitment agency improves your odds of meeting exceptional candidates with vital expertise and industry knowledge. We offer access to a substantial skilled workforce of reference-checked, pre-screened candidates. So, rather than solely depending on local workers to manage and assist your IT operations, explore a broader spectrum of the talent pool at our offshore staffing agency.
- State-Of-The-Art Infrastructure: Utilize our safe and cutting-edge offshore delivery facilities in India for project management and execution.
- Increased Work Capacity: Offshoring IT services provide the benefit of working round the clock for optimum productivity. This results in better outcomes and provides uninterrupted project support.
What makes India an ideal offshore staffing destination?
The labor cost in India is much lower than in the US, with a large pool of skilled and English-speaking talent available at lower wages. Besides, India has a vast talent pool as nearly half its population is of working age. It offers a competitive market with its lower wage structure and access to a broader network pool.
We live in a digital age where finding qualified talent isn’t as challenging as it was a decade ago. Businesses are now open to offshore outsourcing even in non-IT functions such as human resources, payroll management, digital marketing, SEO, online reputation management, and social media marketing, to name a few. The latest trends in offshoring have simplified hiring and reduced the recruitment cycle time significantly.
Offshore staffing is an ideal strategy to upgrade your IT talent at an affordable price. Mastech Digital’s offshore talent solutions provide highly-skilled IT talent from India, ensuring your business stays afloat in the competitive market. The company aims to help you optimize resources, reduce infrastructure costs and achieve greater organizational agility.
Frequently Asked Questions
Offshore recruitment process outsourcing is one of the most efficient business strategies today. However, several HR leaders still shy away from deploying the model due to several myths plaguing its image. As an outcome, they miss out on a huge opportunity to add value to their business. If you’re also on the fence, trying to decide if offshoring is the way to go or not, then this post is for you.
We compiled a list of some of the most common misconceptions doing rounds so that you can make an informed decision and do away with doubts.
Myth: Offshore staffing is all about cost-cutting and compromises on quality.
Fact: It may seem unbelievable, but offshore staffing does offer the convenience of quality hiring without burning a hole in your pocket.
One primary reason offshore recruitment services are highly cost-effective is that you can employ quality talent from less developed nations. Even though these candidates are skilled professionals, they charge you less than a domestic employee would. That’s because they live in a country where the cost of living is lower than yours.
Even though offshoring began as a business strategy for cost-cutting, the technique has evolved to prove beneficial in other essential aspects. For example, offshoring helps you maintain business continuity round-the-clock. So, it helps you serve your clients whenever they call you for support. Most importantly, it establishes you as a global brand and enables you to reach out to clients across borders.
Tip: Make sure you partner with a staffing firm only after being sure of the credibility and transparency of their procedures. Look at their earlier work and see if they can fulfill the promise of quality hiring.
Myth: You lose control over the recruitment process.
Fact: You are always the final decision maker, and offshore recruitment services are only there to distribute the workload.
Offshore recruitment services only work as an advisory for the hiring process and collaborate with your in-house team. You are in the driver’s seat when it comes to employing a candidate with your organization, as the decision to hire or not hire a candidate is entirely up to you. You can even participate in the selection rounds to reassure yourself of the quality of candidates sourced by the staffing firm.
If anything, you’re doing your in-house team a favor by off-loading them of the repetitive and monotonous tasks so that they can effectively use their skills and focus on more strategic and skill-intensive tasks.
Tip: Staffing companies do not know your company’s culture in and out, and only you can ascertain if an applicant can gel with your company’s values and ethics. Hence, it is advisable to be present for the final rounds of interviews with the candidates to correctly assess their cultural fitment with the organization.
Myth- The Offshore staffing arrangement is for large firms only.
Fact- Offshore staffing solutions are easily customizable to fit the needs of every type of client.
There is a suitable offshore staffing service for every business- small-scale, medium-scale, or even large-scale. However, many people mistakenly think hiring employees from a foreign country will cost them a fortune. It requires large budgets, which are a thing of only large-sized organizations.
It is one of the market’s most familiar offshore recruitment myths today. The truth is- hiring offshore talent is highly cost-effective. It is even more beneficial for small to medium-sized firms as it allows them to gain more working hands without spending on additional office space, employee overheads, and more. Moreover, offshoring also offers the flexibility of scaling up or down depending on the demand and business requirements.
Tip: Ensure there are no hidden costs in your agreement, and the terms are transparent right from the start.
Myth- Offshoring puts your data security at risk
Fact- Experienced staffing firms have well-managed security systems to protect your data
In today’s age of digitalization, it is almost inevitable to prevent the exchange of data, even if it’s confidential. Data is the lifeline of all processes central to the functioning of your business and preventing it from breaches is of utmost importance.
Qualified staffing firms deploy certified security systems that can prevent data leakages. Ensure you know their security management procedures well and review their credentials before collaborating with a staffing firm.
Tip: Avoid sharing your organization’s confidential data unless the need arises. That’s why companies prefer to offshore only non-core functions of the business and rely on their in-house team for core competencies.
Myth- Offshore talent does not fit well with the company culture
Fact- Diversity of culture further enhances your brand’s image and establishes you as a global brand
Organizations today strive to become more inclusive as they recognize the importance of DEI (Diversity, equity, and inclusion) in the workplace. Having a diverse workforce enables you to leverage the unique benefits that each of them offers. Moreover, you also increase your visibility among different cultures, further enhancing your market reach.
Although your offshore employees may initially take some time to familiarise themselves with your culture, having a cultural addition is always beneficial in the long run.
Tip: To minimize the language barrier and conflict of interest, ensure you have a well-managed communication process.
Many offshore recruitment services myths are trying to instil fear in the minds of business owners. We understand how much of a dilemma it can get when it comes to making a decision. However, don’t let distorted information get in your way of experiencing the immense benefits that offshore recruitment services offer. Dig into the facts, upcoming trends and see for yourself if they can provide for your business needs in a cost-effective and scalable manner.
Frequently Asked Questions
If you’ve ever searched for ‘outsourcing’ over the internet, you must’ve come across the terms ‘onshoring,’ ‘offshoring,’ and ‘nearshoring.’ All of them are outsourcing models, and they differentiate from each other based on the geographical location of the outsourcing agency.
Wait, did it get a bit confusing? Don’t worry! Here’s correcting the confusion with a detailed comparison so you can decide what fits best with your business needs. Let’s start with the basics.
What is Offshoring?
Offshoring is when you delegate work to a third-party firm outside your home country.
What is Onshoring?
When you contract part of your work to an organization situated in the same country as yours, it is called onshoring.
What is Nearshoring?
It is called nearshoring when you utilize services from a company situated in a nearby country with a similar time zone as yours.
Offshore Vs. Onshore Vs. Nearshore- A Detailed Comparison
Comparing the three outsourcing strategies based on certain key features can give a clearer picture of what can help you steer towards your business goals fast.
Coordination and Control
- Offshore– In this method of outsourcing, communication mainly takes place through a virtual medium. Face-to-face interaction is scarce or negligible; thus, having a reliable team of remote workers becomes imperative. It will help if you have an efficient communication system and smart remote work procedures to prevent miscoordination among your team members. Recruiting an offshore staffing agency for offshoring is one of the best methods to make the most out of your offshore strategy.
- Onshore– Onshoring offers a significant advantage in communication and supervision. Your in-house employees can interact with them regularly and hold in-person meetings and training whenever required. Being in the same country, the vendor’s team is easily accessible. This reduces the chances of miscoordination and thus the turnaround time for projects.
- Nearshore– The nearshore model falls somewhere between the offshore vs. onshore conflict. Since your nearshore team works from a neighboring country, you have a chance to visit them from time to time, but that depends highly on your commute’s difficulty and distance.
2. Availability of a Diverse Talent Pool
- Offshore– Offshoring is the winner regarding the diversity of hiring options. One of the major benefits of this model is that you have access to a global talent pool and the opportunity to recruit the best from among them.
- Onshore– Onshoring offers limited options when looking for and hiring an outsourcing agency. You are limited by geography as you must search only within the borders of your country.
- Nearshore– Almost like a negotiator in the tussle between offshore and onshore, nearshore outsourcing offers you the freedom to move past the borders, but not too far. So, it provides more choice than onshoring but less than offshoring.
3. Linguistic, Cultural, and Time zone Differences
- Offshore– Language and cultural barriers are significant in this one as your offshore team resides in a different country or maybe even a different continent. While the time zone difference hampers instant communication, it also serves as an advantage. The latest tech trends in offshoring have helped bridge this gap to a large extent. Alternative shifts of work across borders ensure round-the-clock continuity of business operations. While your team in one continent may be asleep, the other one will be up and working.
- Onshore– There’s little to no language barrier between you and your onshore team since they reside in the same country as yours. The absence of time zone differences makes instant communication possible, thus enhancing work speeds. Moreover, the cultural difference is also negligible, further improving coordination and understanding between your in-house team and the outsourcing agency.
- Notice that the stark difference between onshore and offshore regarding language barriers is due to a significant shift in the location in the latter case.
- Nearshoring– Minimal linguistic and cultural dissimilarities characterize Nearshoring. Because the time zone difference is not that significant, the model offers reasonable convenience of coordination.
4. The Cost Factor
- Offshore– A highly cost-effective solution that helps companies cut back on huge expenses without compromising on the quality of work. Offshoring destinations like India, the Philippines, Mexico, and likewise offer skilled professionals at considerably lower salaries than the developed nations due to the lesser cost of living and abundance of talent.
- Onshore– Hiring onshore talent is undoubtedly the most expensive of the three. Domestic talent usually comes at wages higher than what you can find outside.
- Nearshore– Depends entirely on your country of work. If you’re residing near major offshoring destinations like India, Bulgaria, China, Poland, and others, you can enjoy the benefit of low-cost labor, just like offshore. However, if your neighboring countries offer expensive talent, you might have to rework your budget.
Table: Offshore Vs. Onshore Vs. Nearshore
Offshore Vs. Onshore Vs. Nearshore- Which is the best?
Well, there’s no single correct answer to that! Each of them is an excellent method of outsourcing that can help businesses save on expenses and improve business efficiency. The trick to finding the one suitable for you is to take a closer look at your business needs and see which serves them the best.
For example, onshoring presents a viable solution when you want to execute projects which require prompt communication and need to monitor your team’s progress and performance closely. However, offshoring is your best bet if you’re looking for a cost-effective solution for jobs that do not require much supervision.
To solve such challenges, Mastech Digital offers a hybrid offshore model that combines both benefits and helps you make the most out of offshoring.
This model helps you factor in all the benefits and risks and evaluate each method’s compatibility with your business goals before making the final decision. Good luck!