How to build scalability, efficiency in your service business by offshoring?

If you are not offshoring there is a high likely hood that some of your competitors are gaining a competitive edge over you by offshoring.

What are some of the typical offshoring options?

There are various fundamentals that one needs to understand when it comes to offshoring to decide whether it is a feasible option for service related businesses such as Law firms and accounting firms or any service oriented firm for that matter.

Many service firms face the daily dilemma of how to grow their business when they are in a quandary because they can't find good staff to hire, when they can't find specialized talent that they can hire and not to mention how to rein in labor costs such as workers compensation and related attributable overhead. 30-60-90-120 day late receivables also add to the dilemma because your cash flow gets tied up.

The strategy that fits hands in glove with resolving the issues above is offshoring.

 So the question becomes," Have you already built an offshore team? If you answer is yes then you are ahead of some of your competitors, however, if your answer is, "No, but we have been thinking about it" I suggestion two ways:

1. Build your own offshore team utilizing a business process organization BPO.
2. Find someone who already has an offshore team in place and offshore your work through them to test how this whole deal works for you.

If you can find someone who already has an offshore team it is the ideal way to go because you reduce the risks in terms of renting office space, hiring staff, etc. All you are responsible is for documenting your process, offshoring projects on a small piece meal basis and paying just for what you need done.

However, there are those of us who rightfully are apprehensive about outsourcing our work to an offshore location because there are inherently perceived risks involved. Therefore you have to weigh the pro's and cons of offshoring and outsourcing and then decide what is in your best interests.
however, there is a fear associated with offshoring.

Fear of offshoring:
What will my customer/clients perceive of me when I offshore their projects?

The first worry any accounting or law firm obviously has is, " Will my customers abandon me, once they find out that I am thinking of  offshoring their work?" If you ask your customer, their answer will surprise you. For example if you look just around you, ask yourself, " how many of the products around you or on you are made from offshore labor: some article of your clothes or possibly most of what you may be wearing made in another country. The parts of your vehicle were manufactured in another country. The products in your home or your customer's home were mostly likely built with labor in an international location. Since a majority of products around you are made using offshore services offshore then it shouldn't matter if you offshore projects provided you have better value proposition for your clients correct?

What will my employees perceive of me when I offshore projects?

Reality through an employees eyes - Today with more and more demands being heaped on employees the perception is that there are not sufficient hours in they day. And the pressure inflicted on employees can be demoralizing. If you can ease the life of your employee by taking off some of the burden off their shoulders then the employee is free to work on high value projects and not low value/ mundane projects

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