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The benefits of offshore outsourcing

Most common Business Process Outsourcing (BPO) location structures

Business Process Outsourcing (BPO) companies can be structured differently. One possible difference is the BPO provider’s location. There are three common practices: onshore outsourcing (or Domestic BPO), nearshore outsourcing, and offshore outsourcing. In this guide, we’ll learn more about these types of BPO partners and dig deeper into offshore outsourcing’s advantages and benefits.

What is onshore outsourcing

Domestic outsourcing is the act of outsourcing and receiving services within the borders of the country a company is located in. Various circumstances might cause domestic outsourcing, including, but not limited to, the availability of specialist talents in specific areas, regional imbalances in rates and expenses, and the company’s culture and skill requirements.

What is nearshore outsourcing

Contracting outsourcing vendors’ services between neighboring countries, or geographically close countries, is known as nearshore business process outsourcing. For example, this might include Canada, Mexico, or Central America for US-based companies. Nearshore outsourcing most often happens when companies need specialized skills at lower costs, but specific criteria, such as time zones and language proficiency, must still be considered. One example of nearshore outsourcing can be when a Silicon Valley company outsources some services to software specialists from Mexico.

Offshore outsourcing

What offshore outsourcing

Offshore outsourcing is the third example of outsourcing business customer operations and other company activities. When a company hires a third-party supplier to run some of the operations from an outside country (most often overseas), it is known as offshore outsourcing. Available resources, political structure and stability, lower labor costs, tax reductions, and other factors encourage companies to outsource offshore.

What are the benefits of offshore outsourcing

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While many companies need outsourcing services, offshore outsourcing seems to be the most beneficial and the right choice for companies that don’t need to have all operations done in the same time zone.

Offshore outsourcing is highly cost-effective due to lower living and labor costs, tax reductions, and lower administrative expenses, especially in developing or underdeveloped countries.

Also, hiring an offshore BPO will provide you access to a global talent pool, with high availability of specially qualified, skilled, and motivated people who operate fast and efficiently. FrontLogix is an offshore outsourcing provider that offers exceptional 24/7 Customer Experience, Customer Success Management, Sales Generation and Support, Billing, Software Technical Support, and various Digital and Back-office Services.