Some people and businesses may find offshoring an intimidating concept. Some individuals also think that offshoring and outsourcing are one and the same.
However, outsourcing is a different practice, referring to the practice of organizations contracting work or services to third-party agencies. Meanwhile, offshoring means enlisting the work or business processes of an organization to a foreign location.
Unlike outsourcing, offshoring allows companies to oversee business operations. For instance, if your business is established in Australia, then you can operate an offshore company in foreign locations that are ideal for investors and hospitable to businesses.
4 Helpful Tips for Building an Offshore Business
Below are some game-changing tips that can help to start an offshore company a whole lot easier for you as you build your offshore team and manage them.
- Designate a trusted point person – Assigning a reliable team manager or contact person to oversee your overseas team can relieve you of any stress and keep business operations smooth-sailing even when you’re not there. They can provide updates, and you can work together to lead the team accordingly.
- Establish an open communication system – You need to determine clear expectations with your team from the get-go, including your communication policies and response times. For instance, you can use a particular communication channel for work, and everyone must respond to a message within 30 minutes or an hour.
- Use a hands-on management approach – Conduct regular meetings through video calls, maintain your presence in chat groups or communication channels, and regularly visit the branch to establish a connection and show your team that you’re with them even when you’re not always around.
- Identify your goals and objectives – Set clear targets or goals you’d like your offshore team to achieve from the very beginning. You should also have metrics in place, so your team knows what is expected of them. This should help your team aim for better results along the way.
Starting an Offshore Company
If you’re thinking about starting your own business, you may want to consider starting an offshore solutions company. Here’s a helpful infographic that enumerates the things you would need to build your offshore team along with some tips to make it work.
In the business world, offshoring is a misunderstood concept. For one, it’s commonly interchanged with outsourcing-another expansion model, but a different practice. Outsourcing focuses on contracting third-party services, while offshoring is more on enlisting those services abroad and sometimes even basing particular departments of your company overseas.