Today, we live in a highly linked, borderless world. Geographical barriers no longer limit businesses. They can set up subsidiaries all across the world. They can also transfer resources such as machinery, technology, expertise, and even persons. Businesses have been embracing offshore staffing to save money and boost efficiency for some years.
Outsourcing’s contracting out a company's non-core functions and procedures to third parties located inside or outside of its home nation. Offshore outsourcing is when work is done from another country. Another notion known as 'offshore staffing' is gaining traction in the corporate sector. Although it is sometimes mistaken for outsourcing, offshore staffing is distinct.
1. What is exactly offshore staffing?
Offshore staffing, often known as offshoring, is the most cost-effective method of staffing. Offshoring is the practice of staffing business and work operations to firms, contractors, or individuals in remote nations with cheap costs and a large skill pool.
Typically, these destinations include countries in Eastern Europe, East, and South Asia, such as China, India, and the Philippines, as well as countries in Africa, such as South Africa. Offshoring is comparable to nearshoring in many ways, except that there are no proximity constraints. However, this strategy comes with a greater degree of cultural and language disparities.
Furthermore, time zone differences have a considerable impact on how the task is carried out. With offshore staffing solutions, you may create a business team of full-time employees that work relatively freely but under strict supervision via video chats and constant communication via email and messaging services.
Offshoring enables firms that outsource their operations to handpick individuals with no geographical boundaries who will cooperate on projects with the in-house team and maintain consistent work outputs.
2. Why might offshore staffing be a profitable business option for your company?
An organization is made up of a group of people who work together to achieve specific commercial objectives. So if you’re a foreign company, you should hire offshore staffing in Vietnam because:
2.1. Save up more on operational costs
Every project or update in your company must be done wisely and effectively to avoid becoming costly liabilities. Your computed profit margin must match the predicted sales growth trend. When everything your company does boils down to this, the best path ahead is to eliminate whatever expenses you can. When you go into it with adequate strategy and study, offshoring or outsourcing part of your services or features may easily convert to additional cost savings. Ensure that your cost-cutting efforts are adequately connected with your company's operational and technological components.
To optimize cost savings, collaborate with the best offshore providers. It is a certainty that the operating expenses of offshore labor will be significantly cheaper, whether in terms of equipment, utilities, infrastructure, or staff compensation. When an offshore team is involved, studies show that the company's overall expenses are reduced by at least 30%. This implies extra money for other important business investments or costs. With offshore staffing, you may get more for less. Offshore teams arrive with their own pre-existing offices and trained staff, allowing you to receive more competent individuals and back-end support at a lower cost.
2.2. Engaging with new talent pools
Offshore staffing provides direct access to a large and highly trained talent pool for organizations that are struggling to attract and retain top employees domestically. Some of the advantages of offshore employment include a larger talent pool, higher-level knowledge at cheaper rates, a dedicated team to oversee services, and faster project turnaround times.
Small businesses, in particular, that may lack the means to engage an in-house tech or domain expert, can benefit from the huge pool of tech professionals at inexpensive prices by outsourcing IT operations. Talent pools may also assist you in maintaining a steady supply of applicants to fulfill your company's future needs.
2.3. Get that unique competitive edge
Consider all of the new views and ideas you may gain by collaborating with individuals from all around the world to solve your company's difficulties. Offshoring provides access to a pool of educated and skilled individuals providing your organization with a worldwide competitive advantage. When it comes to making business judgments, agility, and nimbleness will ensure your clients are kept pleased and immediately provided. This is something that offshore staffing can assist you with.
2.4. Improved access to limitless resources
When you choose offshore staffing, you can easily cover all of the additional costs associated with hiring and training resources for your company. Offshore teams will have highly experienced people capable of managing the processes required by your company. People with specific specialized skill sets may be difficult to obtain in your area and offshore provides you with access to such people. Not just people, but also other resources such as technology or commodities that are difficult to obtain locally may be easily available elsewhere. As a result, offshore will provide you with greater access to all of the resources necessary for your company's growth.
2.5. Get the threat of possible risks easily distributed
In the normal scenario, the offshore team is often responsible for non-strategic departments whereas the primary company will have full control over the strategic segments. When the duties get split like this, the associated risks can also get evenly distributed. When the entire supply chain remains a centralized one, even the slightest of problems or risks could affect the overall functioning of the business. Roping in an offshore team and splitting the duties will enable any shortcomings to be quickly isolated and managed without the whole ship going underwater. In some cases, there could be local unrest, Government restrictions, or even unstable weather affecting the business functioning in your area. Having an offshore team could help mitigate such business risks to some extent.
2.6. Enhanced focus for complex tasks at hand
They say time is money, and in business, this is only true if you can boost the engagement of your in-house staff at work. When you allow them to focus on more complicated activities and initiatives without getting bogged down by boring business chores, the team is set for bigger things. An offshore staff might handle time-consuming administrative chores like payroll accounting and record keeping, as well as business procedures like management and recruitment. It is a sensible option to delegate non-strategic duties to teams that are experts in those areas. Your entire attention should be on the principal product or service that your firm provides.
Improving the company's reputation and its profitability will always be contingent on everything you do to improve this emphasis. By engaging an offshore team, top-level management may focus their efforts on ensuring that the company's goals are developed enough to complement the primary product or service. They might concentrate their time and resources on repositioning services and goods to remain competitive. By exploiting their core capabilities, your company's top executives may help expand market share.
3. How can you find the best offshore staffing solutions in Vietnam?
3.1. Potential Offshore staffing hub
According to Indexmundi, Vietnam will have the world's "golden population" in 2021, with more than 65% of the population under 30. According to the Vietnam IT Market Report 2020, Vietnam is a prospective staffing site. According to the research, Vietnam has around 400.000 IT engineers. This figure is continually rising, with over 50.000 IT students graduating from 153 IT institutions each year, adding to the IT skill pool. They are dynamic, enthusiastic, and willing to learn, which is a key benefit of offshore staffing in Vietnam. Young Vietnamese with a superior education has broken through the linguistic barrier. Among the technological behemoths that have chosen Vietnam for manufacturing and R&D are Intel, Samsung, Microsoft, Fujitsu, Foxconn, Panasonic, Bosch, Alcatel-Lucent, Amdocs, Avaya, Cisco, and Juniper Networks.
Vietnam is regarded as a vibrant country with political stability and social peace; despite Asian and global financial crises, its economy has grown steadily over the previous three decades. Vietnam revised the Investment Law and the Enterprise Law in 2020 to better attract foreign investment, expedite the foreign investment admission procedure, and improve the business climate. It provides significant incentives for the IT industry to capitalize on globalization.
3.2. Vietnam's Rankings in Global Service Reports
Vietnam ranks sixth among the top countries recognized as strong locations for staffing services and the growth of digital hubs, according to the Global Service Location Index 2021. Financial appeal, people skills and availability, corporate climate, and digital resonance are all elements that influence GSLI ratings.
In Tholons indexes, Ha Noi and Ho Chi Minh City are frequently placed among the top outsourcing centers. They make excellent and prospective ICT centers. To lower travel time when collaborating with global organizations, the bulk of offshore IT Staffing Services Companies are based in these two areas in Vietnam.
Companies have begun to capitalize on Vietnam's enormous potential for cost-effective and high-quality staffing. Vietnam is a reliable location for increasing your technical skills at the lowest feasible cost while lowering the risk of sophisticated cyber assaults. Vietnam, as a popular staffing destination, will be great for companies wishing to grow technologically without spending a lot of money.
Accounting staffing has a critical position in a company. So if you just started or are planning to do business in Vietnam, you should consider using some accounting and finance staffing in Vietnam.
Get top-notch Staffing and Payroll solutions from TSC in Asia. Our services, including Staffing and Payroll Outsourcing, BPO/RPO, and BOT model, enable businesses of all sizes to hire and operate cost-effectively. Since 2018, our recruitment team has provided candidates in diverse fields catering to specific client needs, from junior to management positions.