Offshoring vs Outsourcing
Offshoring and Outsourcing are the two buzzwords in the accounting world that are often misunderstood or confused. While there are some similarities, the two are very different business strategies, with their own benefits and drawbacks.
What is Offshoring?
Getting the work done by your own team under your direct supervision based in a different country.
What is Outsourcing?
Getting the work done by contracting out to a 3rd party in a different country.
Offshore Staff Is Your Staff
As you control the whole hiring process from shortlisting to conducting interviews, the offshore staff is like your other staff sitting in another office. Whereas outsourcing companies are B2B arrangements with no sometimes control on who is doing the job.
You Are In Total Control
The offshore team work under your direct supervision from 9 AM to 5 PM UK time - no such privilege in outsourcing.
Manage The Training Needs
An outsourcing vendor can never gain experience according to your firm’s functions. He can not learn as much with time spent working for you. Highly skilled staff is an asset for any for any firm. You are in complete control to organise trainings and upskill your team as per your requirements.
Cost Effective
Wishlist this shouldn't be the only reason, on average offshore team is 20% - 25% more cost effective than outsourcing and upto 50% compared to UK team. That is why all Big 4 firms have offshore offices.
Know Your Staff Well
You never really get to know who is working for you for the tasks outsourced. Since offshore team is your own team, you get to know each other which has significant motivational impact resulting in higher work quality.
You Get Direct Reporting
Remote Staff sends you daily time sheets to have the time-task monitored and reports reviewed regularly. As a supervisor, the offshore team reports to you (or your managers directly). You set their targets and you do the performance appraisals.
Work Efficiency
Regular monitoring and supervision makes your offshore staff efficient which in turn free up the valuable time of your UK team to focus on customer services, business development or high value advisory.
A Flexible Hiring Model
You have a flexible hiring model to hire as required. You can scale up or down the number of offshore staff without long term commitment.
