So, you’re a business owner seeking to scale your operations and deliver top-notch digital marketing services. You’ve built a strong foundation and invested considerable time and resources into your business.
Yet, the results haven’t met your expectations.
- Efficiency isn’t improving
- You are struggling to achieve profitability
- Your in-house team lacks the once-in-a-while required skillset
A dependable outsourcing partner can help you deal with all these challenges and to achieve remarkable growth and service quality.
However, that poses another challenge – What should you choose between local and offshore outsourcing?
If you’re curious about learning how to outsource your digital marketing services effectively, this ebook is your go-to resource.
By the end of this blog, you’ll have all the necessary insights to make an informed decision about outsourcing locally or offshore.
Key differences between local and offshore outsourcing agencies
Let’s start with the differences, shall we?
Here are your options – local outsourcing and offshore outsourcing agencies.
- Proximity and time zone alignment
Local agencies work within the same or similar time zones for companies based in the same country. This contributes to the efficiency of the communication process because they can react instantly, get feedback more quickly compared to working with companies in different time zones, and easily and quickly schedule a meeting or a call.
However, some offshore agencies offer to work in your time zone or even provide 24-hour assistance because they have a diverse team of individuals worldwide or people working different shifts.
- Language and communication barriers
Local agencies will be able to better follow and execute branding requirements, especially for industries such as digital marketing, where tone and cultural context matter.
On the other hand, language barriers may or may not occur with offshore companies because some offshore agencies work primarily with US and European companies.
- Cultural compatibility and business etiquette
Cultural affinity can have a big difference when completing a project where two businesses collaborate, especially if the business is in an elaborate field such as digital marketing.
Of course, local agencies know about the customs of US culture and the manners in which business operations are conducted there. They make deals with clients and handle any issues that may come up.
However, with offshore agencies, you have a diverse culture, which can benefit your agency.
- Cost structures and financial considerations
Pricing has always been an essential factor when outsourcing locally or overseas. Agencies operating from the United States usually have higher labor costs.
On the other hand, agencies based in countries like the Philippines, Poland, and India provide competitive pricing based on many factors, such as the cost of living in these countries.
Now, let’s discuss the positive side of both local outsourcing and offshore outsourcing.
Benefits of choosing local agencies for outsourcing
Here are some of the advantages of choosing local outsourcing for your agency.
- You will have improved communication because of similar customs and language.
- There will be faster response times due to similar time zones.
- Your local outsourcing partner will be familiar with the local market dynamics and well accustomed to the compliance standards you want to incorporate in your business.
- You will occasionally be able to have face-to-face meetings and hands-on collaboration, eventually making your partnership more effective.
Benefits of choosing offshore agencies for outsourcing
Here are a few benefits of outsourcing to offshore agencies to grow your business.
- You will have a cost-effective solution because of the reduced overhead costs of hiring in-house talents or a local agency whose rates will be quite high in the US or European Union. Offshore outsourcing to Asian countries will relatively cost less and save you money.
- You will have access to a larger and diverse pool of talents with specialized skills.
- Your offshore outsourcing partner will be more flexible and available in your time zone to assist you. You will have around-the-clock productivity and availability.
- You can easily scale up or down your business operations based on the sudden rise or decline in demand.
But before making your decision, here are the defining factors you need to consider.
Factors to consider when choosing between local and offshore agencies
Here are a few factors that should be considered, as well as crucial questions you need to find answers to before choosing your outsourcing partner.
- Define your budget and manage your costs properly. Spend more on areas that need improvement and haven’t seen significant results.
- Define the scope of your project. Is it complex and requires the expertise of an experienced team, or do you want to complete it quickly?
- Ensure the quality of services that you will receive from your outsourcing partner.
- What are the communication channels? Will your preferences be considered?
- Does your outsourcing partner comply with the industry standards and legal policies?
You must find probable outsourcing partners who will fit your requirements well. And how do you do that? Let’s see…
How do you assess a local or offshore agency before partnering?
Here are the ways in which you can weigh the ins and outs of local and offshore agencies before making your final decision.
- Evaluate their track record and go through their client testimonials.
- Go through the case studies to learn about the experiences of their past clients.
- Analyze their communication strategies and the project management tools they use to assign tasks and convey project updates’ progress.
- Lastly, review their data security and check whether they comply with the latest protocols.
Key takeaways
Local outsourcing or offshoring – depends on your business’s general objectives, cost control, and type of project.
In some special cases, when your project demands close supervision and immediate feedback and must comply with industry standards and policies, local outsourcing could be cheaper than offshore outsourcing. Still, it may or may not be as effective.
On the other hand, if cost savings, access to global expertise, and time-zone availability are your priorities, offshore outsourcing might be more suitable and cost-effective.
Ultimately, understanding the nature of your project, setting clear expectations, and thoroughly vetting potential partners can help you select the model that best aligns with your business objectives.
