By any measure 25% of us are working remotely and almost every remote worker would work remotely for the rest of their careers and recommend remote work to others. In some industries like digital marketing, software development, and customer service, this figure is much higher.
A further 75% of all jobs can be done, either in full or in part, from outside the office. For better or worse, the COVID19 pandemic only accelerated an existing trend of hybrid and remote working.
Most of the products or services we produce and consume daily are (at least partly) already delivered by someone in another country. Given the choice between the flexibility of working from home or the office, most people would take the former.
The concept of offshore staff is nothing new. At its core the benefits are always the same; large cost savings for business and attractive opportunities for high quality talent otherwise unavailable in lesser developed countries.
What separates a good offshoring experience from a bad one depends largely on whether you source and employ remote staff yourself or through an agency, commonly known as a BPO provider (Business Process Outsourcing).
Both approaches to employing someone offshore have strengths and weaknesses depending on your goals, budget, and recruitment needs.
By the end of this guide, you’ll better placed to decide which outsourcing solution meets your needs and how to hire and scale a high-performing cost-efficient remote team.
Benefits of Hiring International Remote Workers
Cost Savings: Employing international remote workers can substantially reduce operational expenses. Salaries in countries with a lower cost of living are often much more affordable without compromising on quality, offering significant savings on labor costs. This financial advantage allows businesses to allocate resources more effectively, enhancing profitability and growth potential.
Access to a Highly Skilled Talent Pool: One of the most compelling benefits of hiring offshore staff is the access it provides to a vast, highly skilled talent pool. With a global reach, companies are not limited by the local labor market and can find employees with the specific skills and expertise they require. This broader access can lead to the discovery of exceptional talent that can drive innovation and excellence in your operations.
Scalability and Reinvestment: Outsourcing enables easier scaling of operations. As business needs change, it’s simpler to adjust the size of your remote workforce without the constraints of physical office space or local labor market conditions. The savings achieved through outsourcing can be reinvested into other critical areas such as R&D, marketing, and product development, facilitating further growth and competitive advantage.
How to “Employ” International Remote Workers Yourself
Utilizing Freelance Platforms: Platforms like Upwork, 99designs, and Freelancer simplify the process of finding international freelancers for project-based work. These platforms manage contracts, project briefs, and payments, providing a layer of security and ease for both parties.
Hiring for Long-Term Engagement: For more permanent roles, tools like Native Teams and Deel help businesses stay compliant with local employment laws while offering flexibility. These platforms handle the complexities of international payments, taxes, and legal compliance, making it easier to maintain a global team.
Setting Up Operations Abroad: An alternative approach is to register a business entity in the country you wish to outsource to. This method provides more control but comes with the need and cost of understanding and complying with local laws and regulations. You will need local lawyers and accountants to manage this process.
Pros and Cons of Hiring Internationally Yourself
PRO
Project-Based Flexibility: Direct hiring is particularly beneficial for project-based work where specific skills are needed for a limited time. This flexibility allows businesses to adapt quickly to project demands without long-term commitments.
PRO
Cost Efficiency: Initially, hiring freelancers for short-term projects can be more cost-effective than engaging in long-term employment contracts. Companies can negotiate rates directly with freelancers, potentially leading to lower overall project costs.
CON
Resource-Intensive Recruitment: The process of sourcing, interviewing, and vetting international candidates requires significant time and resources. Unlike domestic hiring, the added challenge of navigating international talent pools can complicate recruitment efforts. Moreover, reliance on recruitment agencies to bridge these gaps can introduce additional costs.
CON
Reliability and Management Challenges: Unlike in-house teams, freelancers may juggle multiple projects, leading to availability issues or inconsistent work quality. The lack of a formal employer-employee relationship can make it harder to enforce deadlines and maintain steady communication. Freelancers can ‘go dark’ much easier, leaving you nothing other than the apps that connect you to manage, stay engaged and measure performance.
CON
Comprehensive HR Responsibilities: When hiring directly, all human resource tasks fall on the company. This includes not just performance management but also understanding and adhering to the employment laws of the freelancer’s country, which can be complex and time-consuming. The company must also handle the difficult conversations and be aware of all local laws and customs.
CON
Difficulty in Scaling: For businesses looking to expand rapidly, managing a growing number of freelancers across different time zones and legal systems can become unwieldy, hindering efficient scaling.
Pros and Cons of Hiring International Workers Through a BPO Provider
This option essentially involves engaging an outsourcing agency to handle the sourcing, screening, set-up, and HR of your remote team. You pay for to have someone manage this on the ground on your behalf.
PRO
Streamlined Recruitment Process: BPO providers leverage their networks and expertise to streamline the recruitment process, significantly reducing the time to hire. They ensure that candidates not only match the skill requirements but also fit the cultural and operational ethos of your company, thereby enhancing team cohesion and productivity.
PRO
Full HR and Operational Support: Outsourcing partners manage all aspects of HR, from onboarding to payroll, benefits administration, and even conflict resolution. This comprehensive support frees up your internal resources to focus on core business activities, driving growth and innovation.
PRO
Expertise in Scaling Operations: BPOs excel in quickly scaling operations to meet changing business needs. Whether you need to ramp up quickly for a new project or scale down post-completion, BPOs can adjust your team size efficiently, ensuring flexibility and agility in business operations.
PRO
Cultural Expertise: BPOs understand their talent market better than anyone else. They will be able to source and hire the best talent based on the skills and capabilities you require because they understand the culture and expertise of their own geography.
CON
Potential for Higher Costs and Contractual Complexity: Some BPO providers include significant service margins or enforce complex, restrictive contract terms, which can increase operational costs and reduce flexibility. Try work with providers who charge no mark up on staff costs and provide easy and clear in and out terms.
CON
Saturated Talent Pools: Some BPO providers source talent from regions already highly saturated, like Philippines and India. This saturation can lead to longer hiring times and higher costs to secure top-tier talent, as the best candidates often have multiple offers.
Which Roles are Suitable for Outsourcing?
Outsourcing is viable for a wide array of roles across industries, from IT and software development to customer service, administrative support, and beyond.
Digital marketing agencies often outsource content creation and SEO services to access specialized skills and manage workload fluctuations.
Legal Process Outsourcing (LPO) and Healthcare Process Outsourcing (HPO) demonstrate how even highly regulated sectors have embraced outsourcing. Law firms frequently outsource tasks such as legal research and document review, while healthcare providers may outsource coding and billing services to manage costs and improve efficiency.
In essence any role that does not require a physical presence or is restricted by licensing can be effectively outsourced. This strategy not only cuts costs but also taps into global talent, fostering innovation and competitive advantage.
Outsourcing has become a strategic approach for businesses looking to enhance efficiency, access specialized skills, and optimize costs.
Six Typical Roles or Tasks Companies Frequently Outsource:
1. Customer Service Representatives: These professionals handle customer inquiries, complaints, and support needs. Outsourcing customer service allows businesses to provide 24/7 support without the need for an in-house team operating across multiple time zones.
2. IT Support Specialists: Outsourcing IT support enables companies to manage and maintain their IT infrastructure with the help of external experts. This includes everything from troubleshooting technical issues to implementing new technologies.
3. Content Creation: Creative tasks such as writing, graphic design, and video production are often outsourced to tap into a diverse pool of talent and creativity. This approach allows businesses to produce high-quality content without the overhead of a full-time creative team.
4. Human Resources (HR) Management: From payroll processing to recruitment and employee onboarding, outsourcing HR functions can help companies streamline their HR processes and focus on core business activities.
5. Finance and Accounting: Managing finances, accounts payable and receivable and bookkeeping tasks are all roles regularly outsourced. This allows businesses to reduce costs and manage risk by reducing workloads and not being bogged down by complex financial processes and administration.
6. Web Development and Maintenance: Developing and maintaining a web presence requires specific technical skills that may not be available in-house. Outsourcing web development projects to specialised agencies or freelancers can ensure that businesses have access to the latest technologies and web standards.
By leveraging the global talent pool, businesses can not only save on labor costs but also enhance their service offerings and operational efficiency. Outsourcing these roles enables companies to focus on their core competencies while enjoying the flexibility and scalability offered by external expertise.
Outsourcing Employees Yourself or Using a BPO Agency
Common Questions When Outsourcing or Employing Remotely
What is the talent like?
Eastern European talent, particularly Macedonian remote staff, stands out for its robust educational background, strong work ethic, and exceptional skills in various domains, including IT, customer service, and creative industries. Macedonian professionals are known for their problem-solving abilities, adaptability, and commitment to quality, making them valuable assets to any team.
How much does it cost?
The cost of outsourcing depends on the role’s complexity and the experience level required—junior or senior. However, outsourcing can be 40-70% more cost-effective than hiring onshore. Connect stands out by charging no markup on labor, offering a fixed flat monthly fee, ensuring transparency and predictability in costs.
How does interviewing work when outsourcing?
Connect specialises in running bespoke recruitment campaigns for each position, presenting pre-vetted candidates to clients. Clients maintain full control over the interview process, ensuring the final hiring decision aligns with their specific requirements and culture fit.
Employment contracts and payroll for remote staff?
As the legal employer of record, a local BPO provider like Connect handles all employment, payroll, and HR responsibilities, while staff work directly under the client’s guidance. This arrangement frees clients from employment complexities, allowing them to focus on their core business.
What are the language skills like?
Eastern Europe boasts high levels of English proficiency, ensuring seamless communication. Macedonian staff possess a keen understanding of Western culture, enabling them to grasp client needs and nuances effectively.
What are the benefits of using a BPO agency?
Partnering with a BPO agency like Connect offers comprehensive employment coverage, eliminating concerns over hiring, paperwork, and HR management. This way, you get full employment cover without the hassle. Expert expat managers on the ground ensure smooth operations, providing peace of mind and operational efficiency.
Connect Outsourcing – Modern Outsourcing with Macedonian Remote Teams
Connect Outsourcing harnesses the strengths of Macedonian talent to offer exceptional outsourcing solutions. By choosing Macedonia, clients benefit from significant cost savings, access to a deep talent pool, and the ease of working with a workforce that shares a strong alignment with Western business practices and culture.
Connect’s approach ensures clients can scale their operations, innovate, and maintain competitive advantage without the administrative burdens typically associated with remote employment.
Final Thoughts
Outsourcing yourself is great for short projects with a clear budget, deadline, and scope or for converting a known freelancer to a full-time employee in another country. For everything else, use a BPO who can access highly skilled talent, quickly.