Reasons Why Companies Are Seeking Out Offshore Workers

Multinational corporations have been grappling with a shortage of skilled workers on a global scale, which has elevated the need for foreign workers. While offshore talent has been part of the workforce for years, the pandemic has expedited the adoption of remote work policies, further increasing its accessibility. Despite its longstanding presence, the appeal of offshore talent remains unfamiliar to several emerging businesses. This article delves into the basics of offshore talent, scrutinises the factors behind its swift proliferation in the IT sector, and weighs up the benefits of recruiting from overseas.

Explaining the Concept of “Offshore Talent”

Offshore talent refers to individuals who are employed by a company but perform their job from a different country.

Addressing In-House Management Challenges and the Demand for Offshore Talent

Having a comprehension of the context surrounding offshore talent and its escalating need in many businesses is crucial. While internal teams may not have a significant influence in this scenario, there are other factors that require consideration. It’s not unusual to observe companies of varying sizes aligning their objectives towards boosting their profits and curbing expenses. The ultimate goal is to ensure a higher revenue than expenditure. All of these factors combined make it not only advantageous but also feasible for organisations to hire overseas.

1. Recruitment is a Time-Consuming Process

  • Outsourcing is a key driver that motivates companies to recruit from abroad. We are all aware of how long-drawn-out and strenuous the application and interview procedure can be. Studies suggest that companies usually devote 55 days to each potential candidate during the recruitment phase. Time is a critical factor, and yet, some businesses still encounter unsatisfactory hires despite taking numerous precautions to ensure the selection of the most competent candidates. Recruiting from offshore, where workers undergo thorough scrutiny and possess extensive expertise in their specialized field, is often the preferred option.
  • Besides, businesses might have to wait for up to two months for a new worker to commence, owing to factors such as notice periods and the duration needed for the individual to become part of the organisation.
  • Studies reveal that recruiting a candidate from within the United States incurs an annual cost of over $20 billion, which is an exorbitant amount of spending.

2. Reasons Behind Employee Retention

Undoubtedly, youthful employees have the ability to propel companies towards greater success. However, their lack of job experience implies that businesses must expend additional time and resources on training them. This inflates the cost per candidate for companies and poses a significant problem when employees depart within a year of completing their training. The financial losses and consequent decline in profits are understandably worrisome for businesses. Therefore, it is critical for companies to ensure that the investment in training is recovered when the employee stays with the organisation for over a year.

3. It Hampers System Flexibility

In situations where a company needs a specific skill set to accomplish a project, it is often more practical to recruit individuals with the requisite knowledge and competency rather than hiring temporary workers to fulfil the role. This may, however, result in the business having to remunerate the highly skilled individuals even after completing the project, squandering resources that are no longer necessary.

Outsourcing versus Offshoring

To eliminate any ambiguity, it is crucial to differentiate between the terms offshore and outsourcing. Clearing up the definitions of each term can facilitate the identification of when to opt for one over the other.

  1. Into the Depths

    Offshore pertains to the practice whereby a company has its primary office located in one geographic region and establishes branches in another. These companies, such as Google and Microsoft, utilise their offshore affiliates to conduct business activities in diverse regions. The headquarters located at the home base generally maintain authority over the operations of their affiliates, providing them with greater supervision.
  2. Personnel Residing Abroad or Professionals

    Now that we have established the meaning of ‘offshore’, we can initiate our pursuit of potential candidates situated in such regions. Offshore talent or workers refer to individuals hired by an organisation from other regions of the world, comparable to the concept of offshore businesses.
  3. A Worldwide Perspective

    With the international workforce encountering obstacles while trying to keep up with the escalating demand for qualified personnel, the adoption of an offshore approach is growing in popularity. This strategy can enhance the quality of work produced, resulting in a more admirable reputation for the company in the industry. Moreover, by utilising developers from various corners of the globe, the company’s reach is expanded, extending the firm’s customer base. This is anticipated to contribute towards an increase in both the company’s market value and profitability.
  4. Advantages of Operating Abroad

    Cost-effective owing to the significant exchange rate between the two currencies and the abundance of inexpensive labour. Makes inroads into the foreign market where the affiliate is located.


Outsourcing refers to the act of hiring an external provider to execute an internal function for a company. To address the scarcity of blockchain engineers, an IT organisation may engage the services of an external provider to oversee the recruitment process.

  1. Talent Outsourcing

    External providers are fastidious when it comes to selecting the most appropriate candidates for outsourcing, guaranteeing that clients can trust in being served by adept and efficient professionals.
  2. A Strategy for Outsourcing

    Outsourcing is a productive method of accessing capable and proficient workers. It is a mutually advantageous situation for all parties involved, from the corporation to the third-party vendor and the job seeker. For instance, if a company needs the services of a Java developer, they can approach a third-party service provider, who will furnish them with a rigorously assessed and vastly experienced Java programmer. This approach ensures that the developer satisfies all of the project’s requirements and meets deadlines, resulting in a successful outcome for all stakeholders.
  3. Merits of Outsourcing

    Elevates GDP and the earnings of third-party providers by drawing more companies from around the world. Firms can benefit from engaging external vendors since they are capable of providing competitive prices resulting from variances in exchange rates in different countries. This enables equitable compensation to both providers and staff.

Elements to Ponder When Hiring Internationally

Let us centre our attention on the chief aspect: what incites companies to hire from overseas? Despite the myriad of advantages that result from hiring external staff, smaller companies often profit from this approach since it enables them to highlight the competence of their in-house personnel. Nevertheless, it is crucial to take into account the impact that this recruitment process may have on current employees. In-house team members need not fret about job security since it is challenging to locate skilled offshore workers. To obtain a clearer comprehension, let us analyse the plausible reasons driving this tendency.

Approach that Reduces Costs

  1. We have thoroughly deliberated the advantages and disadvantages of offshore and onshore outsourcing in our analysis. To elaborate further, it has been observed that numerous American businesses can conserve over $2,000 per employee annually by recruiting workers from foreign countries.
  2. Moreover, employing an offshore team of developers is considerably more economical than employing an in-house team, rendering it a preferable choice for companies. How? Offshore developers can be located in numerous countries, evading substantial overhead expenses as they operate from home. Additionally, these developers may dwell in countries with a burgeoning, yet unsound, economy; providing them with a competitive salary alongside the option to work remotely can be highly advantageous for the company’s product development endeavour.

The Utilisation of Talent from Other Countries Might Enhance Productivity

Companies may have confidence in the competence and expertise of their in-house teams in project development. Nevertheless, out offshore workers frequently exhibit enhanced productivity owing to the absence of distractions and the concentrated work atmosphere attributed to remote working. Offshore workers are typically appointed when a particular position necessitates filling, chiefly due to their extensive know-how in the domain. Owing to the job’s criticality and complexity, many companies opt to engage developers from countries such as India, as they comprise the most fitting candidates with the requisite proficiency.

Amplifies Market Exposure

By examining the potential of an offshore approach, we can comprehend how it can aid in broadening our customer base. With offshore staff situated worldwide, each team member can exploit their local connections and virtual forums to boost the company’s visibility amidst developers in the area. This can assist in projecting a positive image of the business, leading to greater potential income. Hence, it is a productive means of expanding the company by recruiting individuals from diverse countries.

Expanding Teams

Onboarding new offshore employees is considerably swifter and more efficient than prevalent recruitment practices. Due to the accessibility of offshore workers, companies have greater flexibility to adjust the scale of their offshore workforce commensurate with market fluctuations.

24/7 Availability

Hiring offshore workers offers a range of benefits, comprising the capacity to operate teams in distinct time zones, thereby permitting uninterrupted productivity. This is especially advantageous for businesses that possess teams stationed in different nations, as it enables effortless switching of attention between groups as the need arises. By leveraging divergent time zones, companies can guarantee persistent service and hasten product development. For instance, when a European team has concluded their workday, Indian teams can take over the reins by virtue of the time zone discrepancy.


Companies are progressively seeking out offshore talent that is well-qualified and experienced to refine their product development, and there is a strong likelihood that the desire for such experts will persist in the future. Both offshore and in-house workers have distinct advantages, and both localities can be utilised to hire the most fitting personnel. We trust this has relieved any reservations you may have harboured regarding conducting business in this area.

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