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Why do businesses use offshore managed services?

Offshoring has become a popular solution for businesses to cut costs, improve efficiency, and access a wider pool of talent. However, for many small and medium-sized enterprises (SMEs), establishing a presence in a foreign country can be a daunting task, particularly if they are not familiar with the local laws and regulations.

Setting up operations in another country requires creating a new legal entity, finding a lawyer and accountant, opening bank accounts, obtaining government licenses and permits, enrolling with government agencies, establishing HR processes, and hiring and managing staff. For SMEs, this can be a complicated, time-consuming, and risky process, which is where offshore managed services come into play.

people working in an office

An offshore managed service provider is a company that is already established and operating in the offshore country of your choice. They have a wealth of experience in owning and operating a business, have resources to hire and manage teams, and have capabilities in the types of services you want to offshore.

By partnering with an offshore managed service provider, even the smallest SME can access the benefits of offshoring without the hassle. These partners can get your team up and running in as little as 30-45 days. The offshore managed service provider's team will work closely with your onshore team to help you choose the right style of engagement, create a project plan to launch your offshore operations, recruit and build a team of professionals that work well with your existing onshore team, and support you in going live and ensuring that the offshore services operate efficiently and effectively.

Using an offshore managed service enables SMEs to quickly and efficiently access all the benefits of offshoring while limiting and mitigating much of the risk. It is an excellent way to get a feel for offshoring as you scale up your organization and get confident in doing so with teams in another country.

Offshore managed services offer a viable solution for SMEs looking to expand their operations in a foreign country. By partnering with an offshore managed service provider, businesses can leverage their expertise and resources to access the benefits of offshoring with minimal risk and hassle.


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