The offshore staff leasing arrangement is just a new outsourcing process that provides businesses full time access to a talented and skilled team coming from offshore locations to help them out in some projects and functions. The concept has become more popular lately as clients could now gain all the benefits to be had whenever outsourcing to overseas destinations where low labor costs and technical workforce efficiency come in real handy. With such arrangement, they do not have to trouble themselves in setting up the needed infrastructures as well.
With the arrangement, companies could also benefit much from access of skilled talent in the long term via the third-party employee-leasing firm, better known as a professional employment organization (PEO). The outsourced workforce gets to learn and adapt to client business processes, thus becoming dedicated experts over time. With such access, companies can readily scale up their business operations, or in other case, ease them down a bit to suit the ever-changing business needs and market environment.
Cost Savings From Offshore Staff Leasing
There are particular offshore outsourcing destinations that offer low labor costs and a highly skilled manpower at the same time. Many companies have already learned the value of utilizing such opportunities because the savings gained from this venture could help improve their operational capital, which should also lead to other good things, like having the ability to provide good support all the way towards the businesses’ bottom line. This helps to create ideal conditions for companies to earn more profit in the long term.
The cost savings gained from offshore employee leasing is very significant compared to traditional methods of hiring from the local labor markets, just like in the case of the U.S. workforce being compared to say, the Philippine workforce, which is best known for producing service-oriented and superbly-skilled talents at low costs. This is so since the labor costs of the country is much lower than that of the United States. Additionally, the staff on-costs are significantly lesser than when leasing employees. This is one offshore employee leasing benefit you should exploit and enjoy.
Alternatively, companies may also choose to lease more staff using the savings gained to further boost productivity and operational efficiency. This is made possible thanks to the minimal setup costs required when entering into an employee leasing arrangement with an offshore third party services. Since leased staff are not direct employees, most of the costs associated to regular employees do not apply. These include the paid leaves, bonuses, insurances, office accommodations, and IT infrastructures that companies give to their regular employees. Staff leasing from offshore locations means the third party provider takes care of such items, all of which reduces the setup costs down to a minimum.