Introduction

Outsourcing is becoming increasingly popular among businesses of all sizes. With the rise of remote work and globalization, more companies are turning to outsourcing to save money and increase efficiency. But when it comes to choosing an outsourcing partner, location can play a big role in determining which option is best for your business.

Types of Outsourcing Options

1. Nearshoring: This involves outsourcing to a country that is geographically close to your own, such as Mexico or Canada. With nearshoring, you have more direct control over the work being done and can easily communicate with your partners. However, labor costs can be higher than in some other countries.

2. Offshoring: This involves outsourcing to a country that is far away from your own, such as India or China. With offshoring, you have less direct control over the work being done and may need to rely on intermediaries to communicate with your partners. However, labor costs can be significantly lower than in developed countries.

3. Onshoring: This involves outsourcing to a company located within your own country. With onshoring, you have complete control over the work being done and can easily communicate with your partners. However, labor costs may not be as low as in some other countries.

4. Freelancing: This involves hiring individual contractors or freelancers to complete specific tasks for your business. With freelancing, you have even less direct control over the work being done and may need to rely on reviews and references to evaluate potential candidates. However, labor costs can be significantly lower than with traditional outsourcing options.

Remote Locations and Indirect Customer Control

When it comes to choosing an outsourcing partner that includes remote locations and indirect customer control, there are a few key factors to consider. First, you will need to determine what level of direct control you need over the work being done. If you require a high degree of direct control, nearshoring or onshoring may be the best option for your business.

If you are willing to accept some level of indirect customer control, offshoring may be a viable option for your business. However, it is important to note that with offshoring, communication can be more challenging due to language and cultural barriers. To mitigate this risk, businesses should invest in robust communication tools and establish clear expectations from the outset.

In addition to direct control, you will also need to consider the level of competition in the remote location you are considering. If you are looking for a low-cost option, it is important to research which countries have lower labor costs but still offer high-quality talent. However, if you require highly specialized skills or expertise, you may need to be willing to pay a premium for those services.

Case Studies

Zappos

One example of a business that successfully outsourced to a remote location with indirect customer control is Zappos, an online shoe and clothing retailer based in the United States. In 2005, Zappos opened a call center in Las Vegas, Nevada, which quickly became one of the company’s most successful operations. However, as the business continued to grow, Zappos realized that it needed more capacity than its Las Vegas call center could provide.

To meet this need, Zappos turned to outsourcing. In 2015, the company partnered with a call center in Manila, Philippines, which allowed Zappos to tap into a large pool of skilled and English-speaking workers. Despite being located half a world away, the Manila call center has been a huge success for Zappos, helping the company to handle a growing volume of calls and providing high-quality customer service.

Airbnb

Another example is Airbnb, which partnered with a remote team in India to build its search engine.