Offshoring Myths: Busted!

 

We are very open with how we deliver our service, which is a combination of local team and off-shore team members. And we have very clear reasons why we think this is the perfect combination on delivering timely and accurate financials, at an effective price with the best customer experience. 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. Technologically savvy businesses know how to lock down IP addresses, and ensure that only relevant data is available to the offshore team at the time and location they are working. 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. We use it to differentiate roles, our local team are regularly talking on the phone to our clients, whilst supported by their team off-shore.
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. Some of the well known ones are Freelancer or Upwork, but there are also industry specific providers too. 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. Offshoring forces you to be explicitly clear with your processes and expectations – which are key in any growing business.
5. Offshore workers are underpaid – This myth is often used to discourage offshoring, but the truth is that the cost of living varies significantly in countries around the world. We are proud to have team members that are supporting their whole family while working regular hours at iKeep.
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.

To successfully run an off-shore team along side your local team involves a significant investment in communication and clarity of process. Sometimes these things are not as clearly articulated when everyone is working under the same roof. Clearly defined roles and processes are also factors in high growth businesses, which is why we think its a great match.

Contact us today for more information about our outsourced offshore bookkeeping services.