Ever feel like you’re constantly playing catch-up with your workload? Labor shortages and rising costs can stifle a company’s growth. Data suggests several firms have canceled or changed the scope of projects due to increasing costs. But what if the solution lies outside your traditional hiring pool?
With the Federal fund’s interest rate at a 22-year high of 5.3% and a 19% increase in average wage rate since 2019, E&C firms are forced to investigate alternate strategies to keep their profit margins in check while mitigating potential risks to project efficiency. Firms are exploring the opportunity to establish operations outside their home country where the supply of resources exceeds the demand. This model has proven to be successful in not only the production of goods but also services. One such instance is the Indian IT industry with waves of offshoring teams set up by multinational companies from the West.
The success that follows from setting up an offshore team and the growth that the region witnesses has encouraged the government to implement policies and regulations to protect the company’s Intellectual Property while also promoting such practices. This has paved the way for small and midsized companies also to reap the benefits of setting up an offshore team.
Let’s highlight the benefits of an offshore team:
1) Reduced labor costs:
One of the biggest contributors to costs that a company incurs is Human labor. Salaries are constantly being raised and don’t always include other expenses such as training, healthcare, infrastructure, and so on. Setting up teams in developing countries has shown to cost the firm on average about 50% less than developed countries.
2) High Quality Standards:
The abundance of highly skilled and talented professionals available in regions other than that of the home country provides firms with the opportunity to hire experienced individuals who can quickly get up to pace with the in-house team and maintain high-quality standards.
3) Achieve 24-hour productivity:
Setting up teams in different time zones means your operations are not confined to an 8-hour workday. Careful planning ensures incomplete tasks by the in-house team by the end of the day can be transferred to the offshore to continue the work when their workday begins. This ensures vital functions remain operational throughout the day.
4) Flexibility and Scalability:
When working in countries where skilled labor is available in abundance, Companies have the option to hire as per their project requirements giving them a choice to scale up or down based on their needs.
5) Internal Staff development:
Offshore teams provide you with a point of reference to compare the quality of operations between the internal and external teams and highlight potential points of improvement and in turn, improve the efficiency of your team.
6) Access to global talent pool:
With the demand for skilled labor constantly on the rise and the supply showing signs of a steady decline in the West, the competition for skilled professionals has never been higher, setting up offshore teams gives firms access to specialists who can take on new projects and facilitate growth.
7) Improved focus on core business:
The operations being run by the offshore team allow you to channel the resources available to you locally into the core functions of the business.
Enventure Engineering, with over 2 decades of experience in providing skilled engineering services, can help you with setting up an offshore team. We navigate labor constraints and support your business growth by leveraging the benefits of offshore teams. Partner with us to unlock cost savings, scalability, and access to global talent.
