Offshoring Myths: Busted

 Offshoring has been a common practice in the business world for a long time, but it's something that has become accessible to smaller businesses in recent years. There are plenty of passionate views as to why people think it’s either a great idea, or a terrible process. We’ve been working with offshore team members for over 10 years and think that it’s wonderful! … once you’ve got your processes nailed.

In this blog post, we will draw from our experience and talk through some of the myths and compare them to our reality.

  1. Offshoring is unsafe - This is a common myth that has been spread around by those who do not understand the concept of offshoring. By outsourcing to an offshore company, you can be assured that your data and information will be safe from hackers as it isn’t stored in one place. There are many MS office setups that can help you implement higher security for your data.
  2. Offshoring hurts local jobs - This type of thinking is old-fashioned and doesn’t consider the global economy. Offshoring creates jobs as it grows the economy. It helps business reduce costs and attain greater disposable income to grow and intern create more onshore jobs. 
  3. Offshoring is too expensive - This may have been true in the past, but offshoring has become more affordable over time. You can now get high-quality work done at a fraction of the cost. There are several websites that help you connect with outsourcing companies. These companies already have the infrastructure and talent pool set up.
  4. Offshoring is not scalable - This myth has been used by some companies to discourage offshoring, but it really isn’t true. In fact, many outsourcing and offshoring experts have stated that scaling your business with a global team can help you grow faster than ever before.
  5. Offshore workers are underpaid - This myth is often used to discourage offshoring, but the truth is that an average Indian/Philippine worker averages up to $15/hour while an Australian worker average up to $30/hour.
  6. Offshore workers are unqualified - This myth has also been debunked by experts who have stated that many offshore companies employ highly educated and skilled professionals. There are several controls in place that ensures that the resources have globally recognised qualification. 
  7. Only big businesses outsource - This myth is also untrue. Small businesses can outsource and offshore their work to get the same benefits as large businesses. There are even dedicated freelance resources available that are highly cost effective. 
  8. The only aim of outsourcing is to cut costs - You can outsource to improve your processes, increase your revenue, and scale your business. For several business it’s easier to get technical expertise overseas and it’s a big reason for outsourcing. 
  9. Outsourcing is not meant for small businesses - small businesses can outsource their work just like large enterprises. The only difference is that they will have a smaller team compared to big companies with dedicated teams focusing on each task individually.
  10. Outsourcing is only for low-skilled work - This myth has been debunked by many experts who have stated that the type of work you outsource depends on your goals and needs, not the skill level required to complete a task. For highly technical works including IT support it is a necessity to outsource.

By debunking these myths, we hope that you will be encouraged to build your global team. We also manage a team of offshore bookkeepers that help us provide excellent service to our portfolio of over 200 businesses Australia-wide. Contact us today for more information about our outsourced offshore bookkeeping services.

Comments

Post a Comment

Popular posts from this blog

It’s 2024 fringe benefits tax (FBT) time!

  As the 2024 fringe benefits tax (FBT) period approaches, it’s essential to note key dates and obligations. Employers who have provided fringe benefits to their employees or their associates between April 1, 2023, and March 31, 2024, are required to lodge and pay their 2024 FBT returns promptly.  Notable dates to remember include: The conclusion of the 2024 FBT year on March 31, 2024. The deadline for lodging FBT returns and settling any outstanding liabilities to avoid penalties and interest is May 21. For electronic lodgments through tax practitioners, the due date for lodging and payment is June 25. Employers new to lodging with a tax practitioner must ensure inclusion on their FBT client list by May 21 to be eligible for the June lodgment and payment timeline. Even if no FBT return is necessary, registered employers must inform the Australian Taxation crucial, the ATO recognizes exceptional circumstances and encourages proactive communication for those experie...
Read more

Managing Cashflow for Small Business

  Any business owner will tell you that managing business cashflow can be a real juggling act. Cashflow is one of the most common problems that cause business owners to lose sleep. Gaining control of your small business’ cashflow will go a long way to improving your peace of mind and reducing stress. So  how Can a Business Improve its Cashflow ? Identify Identifying certain triggers in particular sales and payments will make a significant difference to cashflow management. Analysing outgoing payments and noting when they regularly occur will go a long way to ensure strong cashflow. Some of the key areas to consider are: Payroll for staff Supplier payment terms and conditions Australian Tax Office Utilities Finance including bank fees and loans Rent Payment to suppliers Customer payments including refund policies There are number of business costs that must be accounted for to help create better cashflow management for your small business. Becoming aw...
Read more

Federal Court Decision on Employer’s Failure to Pay Annual Leave Entitlements

  The Federal Court of Australia recently ruled on a case involving an employer’s failure to pay a worker’s accrued annual leave entitlements upon termination, underscoring the importance of compliance with the Fair Work Act 2009 (Cth) and the severe repercussions of non-compliance. Case Background The case focused on the worker’s claims that the employer had dismissed him for exercising his “workplace rights,” imposed unreasonable working hours, and failed to pay his accrued entitlements upon termination. The court found the employer in breach of section 90(2) of the Fair Work Act for not paying the worker the amount equivalent to his accrued but untaken annual leave when his employment ended on December 9, 2021. The owed amount of $8,022.82 was paid only on March 30, 2022, nearly three months after the termination. Seriousness of Breaching the NES The court emphasized the seriousness of breaching the National Employment Standards (NES), stating that “any breach of the NES...
Read more