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    Hiring and Working With Offshore Teams: Know the Real Deal

    If anything good came out of the two-year slowdown brought about by the pandemic, it’s the world’s adaptation of remote work in most industries. Much has been said about the staying power of off-site work post-COVID era. But even so, naysayers and skeptics doubt the benefits of working remotely with an offshore team.

    Are you starting to build a team for your startup? Considering hiring people abroad and managing them remotely?

    If you’re not sure if it’s the right business decision for you, keep reading. We list down the common misconceptions about offshore teams and the realities backed up by facts.

    Myth 1: I will lose control of my business

    With offshoring or hiring a remote team, companies have third-party workers from another country perform specific functions such as sales, IT, and accounting. Even so, having an offshore staff doesn’t mean you’ll lose control of your business. Rather, it will enable you to prioritize your core business and its profitability.

    In fact, 49% of companies hire remote teams from all over the world so that they can focus on the more critical business functions.

    Hiring remote workers is like having a team down the hall. With the right communications platforms in place, you won’t have to worry about being aligned on your vision and timelines.

    Myth 2: An offshore team might deliver poor service

    offshore team myths - poor-quality service

    Not true. A 2021 Deloitte survey found that 80% of the participating companies were satisfied with their remote team’s performance.

    Hiring a team that you don’t work with on-site might lead you to thinking that they’ll do mediocre work. But with the right offshore staffing partner, especially in the Philippines, you’ll get exceptional and hardworking talents at a fraction of the cost of onshore hiring.

    The right offshoring partner gives you access to highly skilled and qualified talents for the positions you need to fill. Effective offshore partners ensure that offshore talents undergo a thorough vetting process before hiring them.

    Having a performance management system in place enables consistently tracking how your remote team performs. It also lets you see which of your team members need extra training and guidance to maximize their potential. An offshore HR partner implements relevant training and development programs so that your team can learn new skills or improve existing ones.

    Myth 3: Only large companies can build offshore teams

    One of the most common misconceptions about remote teams is that they’re only accessible to big and established businesses. False!

    Even small and newly launched businesses can outsource specific tasks to overseas-based workers and reap its benefits. With an offshore team, SMEs and startups with smaller budgets can cut on labor costs and reallocate their budget to other critical costs.

    In 2021, the Clutch Small Business had a survey revealing that 90% of small businesses planned to outsource business functions to optimize and streamline their operations. Also, most of these small businesses are keen to hire and outsource functions such as IT, finance, and legal.

    graph - most common outsourced functions by small businesses
    The most common outsourced functions by small businesses (Source: Clutch)

    Myth 4: It’s too complicated to build an offshore team

    Indeed, building an overseas-based remote team can be very challenging. But with the help of an offshore staffing company, hiring the right talents can be a simple and seamless process.

    Getting a reliable offshore partner relieves you of the unnecessary complications of hiring and onboarding talents. You just have to be clear about your expectations of your team’s skillsets, relevant experience, and work performance. 

    Managing an offshore team is not difficult as well, provided that you have all the necessary tools for communication and collaboration with your employees. 

    Myth 5: It’s difficult to communicate with offshore workers

    offshore team myths - cultural and language barriers

    Another concern about offshore teams is the potential cultural gap between the employer and employees.

    That won’t be the case if you hire a remote team in the Philippines. Filipino workers are globally competitive in terms of not just skills but also ability to adapt to a culturally diverse environment. Because of this, employers don’t have to deal with cross-border differences. 

    Employers need not worry about language barrier when working with Filipinos, too. The Philippines is known for its high English proficiency and neutral accent, with the country ranking second in Asia and 20th worldwide in the 2023 English Proficiency Index.

    Myth 6: Cost saving is the only benefit of offshore staffing

    While hiring remotely is really a cost-saving move, reducing business costs is not the only reason companies hire remote teams.

    Employers also save time on complying with government-mandated health insurance and social security protection. While it’s true that companies still cover the expenses of such employee benefits, an effective offshore partner does the legwork of arranging them for compliance with the local laws. 

    Global Talent Shortage (2016-2022)

    graph - global talent shortage 2016-2022
    The Employment Outlook Survey uncovers not just the most in-demand jobs but also the highest level of global talent shortage in 16 years

    Also, building an offshore team is an effective way to beat talent shortage. According to the latest World Economic Forum study, skills shortage reached a 16-year high in 2022, with 75% of employers finding it difficult to fill in roles in a wide range of sectors such as information technology, finance, and real estate. Such shortage can be managed if you build a remote team in the Philippines.

    Myth 7: Having an offshore team is just a short-term solution

    One may think that hiring a remote team is just a quick fix to overcome a business’ financial challenges through labor cost savings. This is actually false.

    Remote teams can do so much more than completing short-term projects only. Offshore staffing partners also offer a wide range of roles that require long-term expertise and technical know-how such as project managers, web developers, IT professionals, creatives, financial consultants, supply chain specialists, and many more. 

    Moreover, offshore partners gain a deeper understanding of their client’s business through long-term partnerships. They can fully commit to helping clients achieve their business goals in the long haul.

    Myth 8: It will compromise data privacy and information security

    Having a remote team in charge of specific projects and roles may look like as if you’re giving away confidential data. That’s another wrong perception about offshore staffing.

    Work with an offshore partner that has the knowledge, encryption technology, and security processes in place to properly handle your sensitive business data. Look for one that’s also compliant with international and local data protection regulations.

    Related article: Top 5 Offshore Staffing Trends in 2024

    Final Thoughts

    Now that you know the facts about offshoring, it’s up to you to decide if this is the right option for your business. If you go for it, finding the best offshore partner is crucial. Apart from building a solid remote team for you, an offshore staffing company can help you plan and execute the best HR and talent management practices for your employees.

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