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Outsourcing is a great way to save money on the cost of human resources. International outsourcing is a lucrative industry for those looking for more work without relocation hassle. But with so many companies and countries to choose from, understanding how their systems work can be difficult. Did you know that there are also two types of BPO companies in India? One type is ‘Offshore,’ and the other is ‘Onshore.’ However, some differences between offshore and onshore outsourcing exist that companies should consider before making an international decision. This article will help you understand the differences so you know what to expect and what kind of work is available.
What is BPO Outsourcing?
BPO Outsourcing is transferring or outsourcing the entire or a part of the business process operations from a company’s headquarters to an external location. The advantages of BPO outsourcing are that implementation occurs quickly, has a lower cost than direct in-house operation, and allows for flexibility in working hours. Generally, outbound and inbound call center outsourcing in India are prevalent. Also, BPO outsourcing is common in Canada, Italy, the UK, and Australia.
What are Onshore and Offshore Outsourcing?
There are two types of BPO outsourcing: offshore and onshore.
Offshore Outsourcing:
Offshore outsourcing is all about the techies. What does it mean? The idea behind offshore outsourcing is that if you have a large, organized team of experts in certain areas, you can get rid of your small local workforce and put them on the payrolls of offshore human resources companies. These agencies will then transfer those workers and usually their clients to locations that can provide a much lower labor cost than the client’s current location. Offshore outsourcing is a great way to save on labor costs when working with an agency because they take the hassle out of managing the company’s employees. You don’t have to worry about hiring and HR issues, hiring new technicians or replacing them with better ones, training and firing them, and paying benefits, so the agency takes care of all those problems for you.
Onshore Outsourcing:
Whereas onshore outsourcing is a relatively new trend, it occurs when an agency has clients in the same country. For example, if a company has clients in Germany and Switzerland, it can outsource those jobs to companies based in those countries. An onshore outsourcing agency will charge the client much less than its domestic counterpart because of lower labor costs, taxes, and regulations. However, onshore outsourcing does not make sense for companies that have highly specialized or complex needs because the client may not receive the same quality of service as an agency’s local employees would provide.
Reasons to Choose Offshore vs. Onshore outsourcing
The debate between offshore vs. onshore outsourcing has been going on for years. The reason to choose offshore vs. onshore relies on the different advantages that result from each approach. The argument between offshore outsourcing and onshore outsourcing has to do with cost. Work done in the US can be cheaper than overseas because labor is cheap there, and customer service costs are lower. In addition, time zones may also play a role in this decision. For example, suppose you work for an American company with offices in New York or San Francisco. In that circumstance, it is essential to consider when best to schedule meetings or conference calls to avoid disrupting your workday. Choosing offshore services means one must trust them entirely and, therefore, will likely have less control over the process.
On the other hand, choosing onshore services means they know your time zone and their priorities regarding your request. For example, if you are located in New York and send a request to a contractor in Chicago, they will likely prioritize the Chicago call over New York. Although this might initially seem inconvenient, more experienced contractors can help you decide which option is best for you.
Comparison of Offshore and Onshore outsourcing costs
When outsourcing a task or job to a BPO company, there is a significant cost difference between offshore and onshore outsourcing.
Offshore outsourcing typically costs more due to the higher labor rates and expenses associated with working in a foreign country. However, offshore outsourcing can be an advantage for certain companies because it allows them to find and hire qualified workers worldwide easily.
On the other hand, onshore outsourcing (sometimes called ‘in-house’) typically costs less than offshore outsourcing because it eliminates the need to outsource tasks or jobs to a foreign country. These savings result from lower salary rates and other expenses associated with working in India, such as accommodation and transportation.
Overall, outsourcing costs depend on various factors, including the type of task and the location of the BPO company.
Why choose BPO companies in India?
For many reasons, it is advisable to outsource your customer service activities to a BPO company in India. Here are five of the most important:
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Cost-effective outsourcing:
BPO companies in India are typically much cheaper than offshoring or using an overseas call center. For example, a typical offshore call center can cost up to four times as much as hiring a BPO company in India.
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Greater flexibility and responsiveness:
With a BPO company in India, you can be confident that your customer service efforts will be delivered quickly and with high quality. Indian providers are accustomed to working under tight deadlines and generally have the knowledge and resources necessary to provide excellent customer support services.
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Enhanced international visibility:
By outsourcing your customer service activities to a BPO company in India, you can increase your brand’s international profile and reach potential new customers worldwide. Indian providers are well-known for their prowess in providing quality customer service across languages, so Translation Services In Bangalore will not pose any language barriers for your customers.
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Enhanced agility:
Outsourcing your customer service activities to a BPO company in India allows you to rapidly adapt to your customer’s needs and respond quickly to new products or services.
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Reduced costs:
By outsourcing your customer service activities to a BPO company in India, you can save time, expenses, and effort by hiring minimal staff and providing limited customer support services. You will also be able to direct more of your human resources toward enhancing other aspects of your business.
Conclusion
For many reasons, outsourcing your business processing needs to a BPO company in India can be a great decision. One of the critical factors of outsourcing is that you can take advantage of the country’s lower costs, making doing business with a BPO more affordable than doing so in other countries. Additionally, as India undergoes rapid economic growth, there are more and more businesses looking to outsource their processing needs. This means plenty of skilled Indian professionals are ready and able to help your business succeed.
