Outsource vs Offshoring vs Virtual Assistants

Many businesses wonder whether they should outsource, are curious about the advantages of offshoring, or want to find out more on the subject of employing virtual assistants (VAs). What is the difference between these options? Are there any outsource methods or offshoring strategies that can benefit our business? What do virtual assistants actually do?



I will endeavour to answer these questions and more but I will start with the definitions of each.

Outsourcing can take place anywhere in the world, and firms typically outsource tasks that are not part of their core business. Although they might view them as essential, perhaps they lack the necessary expertise; these areas often include such things as IT help desks and contact centres. Outsourcing companies typically focus their efforts on specific tasks in which they are well-versed, such as debt collection, payroll, and customer service. Their charges are based on the volume of transactions and the outsourcing companies define the ways in which the tasks will be undertaken.

A good example would be engaging an expert to deliver a specific piece of work, such as creating a website, producing a certain number of widgets, or providing SEO services.



It does not automatically mean that the work is done overseas, although it can be.

Offshoring, on the other hand, occurs offshore or overseas, not locally. When offshoring, you hire staff through an offshore provider to undertake specific roles, usually on a full-time basis. A key difference is that these staff work for you and only you; they work as directed by you and follow your processes and procedures. Essentially, they are your staff, but they come without the added headaches of employment contracts, payroll, and all things HR.

Offshore means: your people, your processes and procedures, and your systems and tools delivering the work in the way that you want. 

It is about having control of your operations while they take place in another country.

Virtual Assistants are typically recruited through an intermediary and the staff are usually contractors who you hire and pay directly to perform low-value tasks which do not require elevated skill levels. Staff perform the work you want done​, and you set and monitor goals and KPIs. It is possible that virtual assistants will work exclusively for you, but that is not typically the case.

There are things to consider carefully when hiring Virtual Assistants directly:

• You have no control over background, criminal, or medical checks.
• Management of employment law, contracting and paying the Virtual Assistants, and HR is your responsibility.
• Virtual Assistants generally provide their own IT hardware and security, which could mean gaps in your cyber safety.
• You are responsible for professional indemnity and other insurance.
• The liability for the security and safety of Virtual Assistants in the workplace rests with you.

• Save on the costs of direct recruitment and providing workspace and equipment.
• It is cheaper to hire staff or a team to perform specific tasks and thus increase operational productivity.
• A firm that is well-versed in the outsource world will trawl the talent pool and come up with winning candidates that will do the work of your organisation, they will take care of training, onboarding etc and deliver you an agreed outcome.
• Outsourcing companies will supply all the equipment required for staff to do their jobs.
  

• Expenses such as wages, payroll tax, rent, hardware, utilities and other financial burdens can all be slashed, so improving profitability.
• Certain legal requirements sit with your offshoring partner – removing another burden from you.
• It will take care of time-consuming and labour-intensive tasks but you will also be able to tap into a highly skilled talent pool that can deliver highly important and complex tasks such as Tax Accounting, Para Planning, Web Design and Development, Engineering, SEO to name but a few all important roles that will drive your business strategy.
• Top up your skills bank by drawing on the talents of a global workforce.   
• And most importantly, they are your staff, your processes and procedures, your systems and the work is done your way so you are in full control as things are done your way.
  

• Like offshoring, you want lower costs
• You want a staff member to take care of low value, high volume work
• Your small / micros sized business needs stuff done and
• You have a higher risk appetite
  

The right offshoring partner will be confident that they are a good match for you. They will give you the reassurance that you no longer have to look elsewhere, and they will guide you from the very beginning, from the recruitment of your staff to delivering solid business growth.

Opening up your systems to people who have not been through a robust screening procedure could be a recipe for disaster and by the time many business owners discover their records have been compromised it is already too late. Also know exactly how the IT is set-up and what protocols are in place, how robust they are and how they protect your businesses brand and reputation.

Some people are scooping up far more work than they could possibly carry out on their own and then subcontracting it out to anybody, this is a new trend particularly with VA’s which leads to wild fluctuations in standards and a mixed and, at best, mediocre service. Your company’s reputation rests on things such as these, and it can be so easily torpedoed by people who lack the requisite skills, experience and training.

Ignorance of the conditions in which people are working for your business won’t hold any water if human rights are being abused or if any operation approved by you is found to be in breach of anti-slavery legislation.

If you don’t want to outsource or hire a Virtual Assistant but prefer the offshoring option, the following tips are designed to smooth your offshoring journey:

There are a lot of offshoring companies out there and any time spent in researching which is the right offshoring partner for you will not be wasted. Do they have the necessary expertise? What are their staff and client attrition rates? What is their staff and client Net Promoter Scores? How do they coach, train and develop your staff? You need to do your homework.

Draw up a wish-list of what you want offshoring to deliver and see if any of the offshoring partners you are considering might be the perfect match. Do you know anyone who has gone down the offshoring route? What are their thoughts on their offshoring partner? Visit offshoring company websites to see if they resonate with you and your firm or visit them in person. Compare their offerings, packages and services to identify those who meet your criteria and which will deliver the most value.

Seeing how companies present themselves and pitch their ideas and services to you will give you an idea of whether they would be a good fit for your operations. So, booking a consultation is the best way to gain insights into the offshoring companies which you have shortlisted. Some offshoring companies offer little more than offshore staff, so a consultation will enable you to identify an offshoring partner who will also help your business growth and increase your revenue. 

Offshoring requires more than just recruiting resources and setting them up in a different office overseas. Successful offshoring is about creating connections between the head office (onshore) and the offshore teams. This will be a huge investment for you and your company, so make sure you have confidence in your chosen offshoring partner. You want their focus to be exclusively on you, your staff and your clients.