8 Reasons to Consider Offshoring Your IT Services

You’ll save money, time, and headaches when you offshore your IT needs.

Key Takeaways:

  • Offshore IT services allow companies to attract the best talent from around the globe
  • Businesses have more flexibility, less risk, and reduced costs through offshore IT services
  • It saves your HR team time and headaches

Offshore IT services provide many benefits to a growing business. It’s an excellent way to raise revenue, lower costs, discover new talent from across the globe, and refocus your efforts on the things that truly matter to your company. It also helps improve the quality of your product or service, scale up operations, and get a leg up on the competition.

If you’re new to outsourcing, it can seem daunting at first, but with patience and guidance, the rewards will soon become clear. Below are some of the perks of offshore IT services.

1. Faster, smarter growth

The good news: business is booming. The bad news is that you can’t keep up with the demand. You need to staff up quickly to handle the new customers and provide them with top-of-the-line work. When you need a pre-screened, top-notch team at the ready, outsourcing can be just the solution. It lets you move past the sometimes dreary process of hunting for your own developers.

2. A global talent pool

When you look beyond your local area for IT help, you can now find the most qualified developers, no matter where they are. Your firm now has a new level of technical expertise at its fingertips with no limit to the talent and clients you can engage.

Considering the ongoing developer shortage in the U.S., going offshore significantly widens the talent pool you can hire. Instead of being confined to the fifty states, you can take advantage of the talent in markets like the Philippines, which has an extensive, tech-savvy workforce and a lower cost of living.

3. Time and cost savings

When you work with offshore firms, you have more resources to dedicate to customer satisfaction, software planning, brainstorming, and refocusing on improving your core processes. You also save money in an age when Amazon, Google, and Facebook can comfortably offer six-figure salaries for reliability engineers and DevOps who have come to expect next-level salaries and benefits.

In addition to salary, U.S. workers expect generous benefits, including full medical and dental, as well as a 401(k) match. Compared with overseas talent, these costs can strain budgets fairly quickly. When you hire more remote workers from across the globe, your staffing needs at home will decrease, so there will be less need for pricey office space in high-end neighborhoods. You can put this money back into the company’s other priorities.

4. Specialization

Some projects require a high level of expertise on unusual topics that won’t necessarily be useful once the assignment is complete. This makes hiring a full-time, in-house authority inefficient and unrealistic when they will be obsolete only a short time later.

Animated HR workers running into the office.

5. Fewer HR headaches

Assembling a reliable team of developers can be complicated. Many small-to-midsize businesses don’t have the knowledge or staff to handle it on their own. In addition to doing their day-to-day jobs, they will need to:

  • Research and hire a recruiting firm that specializes in this area
  • Walk the firm’s team through their specific needs 
  • Review dozens (if not hundreds) of resumes 
  • Oversee lengthy interviews 
  • Hire, onboard, and train recruits 

This is a time-consuming and expensive process. And, if any developers leave, it all begins again.

An offshore staffing firm handles all of this for you, expediting the hiring process, saving you money, and allowing you to continue to meet deadlines without interruption and with the highest skill and quality you’re accustomed to.

6. Tax incentives 

Countries that supply offshore labor value foreign investment as an economic development driver. For example, in the Philippines, foreign investors get tax holidays and other incentives to attract their business. These outside countries will now have a strong reason to provide jobs to benefit the local economy. Both countries stand to gain from the arrangement.

7. Less risk

Offshore IT services are a lot like investing your money in the market – a diverse portfolio reduces your risk. You need a team with a wide variety of skills and backgrounds, along with a diverse mix of offshore partners. When you have different vendors handling different operations, this can also reduce volatility by spreading around risk.

Since you pay less for outsourced talent, you risk less if the relationship doesn’t work out, compared to the time and cost that goes into a domestic, full-time employee.

8. Support while you sleep

When your whole team works in the same time zone, there is built-in downtime when everyone goes home for the night. While this is useful for team unity, it means any bugs, system updates, or other non-operational work has to happen while everyone is on the clock at the same time, taking away valuable time from big-picture projects like strategic planning.

Having a remote team on the other side of the globe allows your business to keep humming even when your core staff at home is fast asleep. An offshore firm in an opposite time zone, such as the Philippines, can run system checks, troubleshoot bugs, and keep projects moving along that would otherwise wait until the next day.

Offshoring may not be for everyone

Offshoring has many benefits, but it may not always be the right choice for every business. Here are a few potential obstacles that might be an issue for some companies.

  • Different needs for different teams: For some companies, a hybrid model of in-house and offshore workers may be necessary, as some roles in tech leadership may be challenging to remote staff.
  • Cultural challenges: It’s easy to find teams in different countries that share technical skills, but sometimes cultural preferences vary in more creative areas like engineering and design. An engineer in Boston or Salt Lake City may have a significantly different aesthetic than one in Manila or Mumbai.
  • Communication backups: You can have the best video conferencing, collaboration software, and file-sharing tools at your fingertips, but sometimes balls get dropped or deadlines missed. This can cause delays and cost overruns.
  • Unsupported code: Your offshore team may produce grade-A code, but if there’s no one to maintain it after they’ve moved on to other projects, you’ll either rely on them to fix problems and make updates, or you’ll have to bring in another developer to try and work through any issues that arise.

However, the time it takes to make an offshore IT program work is well worth it when you work with the right company – whether it’s having a 24-hour team in place or saving your HR staff from endless interviews and stress.

Why choose DOXA?

When done right, offshore IT services streamline operations, cut costs, and stimulate growth. That process starts when you find the right partner.

DOXA not only provides excellent service to its clients but also to its Philippines-based staff. When you work with DOXA, you’re engaging with IT services across the archipelago, providing employment for workers from urban centers to remote islands. We find great talent wherever it lives, and we want to make the process quick, easy, and successful for you. Let’s get started.

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