Tweet

Reasons Why Small Businesses Must Consider “Right-Shoring”

Guest post by: Gourab Nanda

Article Overview: If you have realized the tremendous importance of outsourcing and are looking to engage the right service provider to offload your non-core business activities, then read this article before you finalize your outsourcing partner.

Reasons Why Small Businesses Must Consider “Right-Shoring”

If you have realized the tremendous importance of outsourcing and are looking to engage the right service provider to offload your non-core business activities, then read this article before you finalize your outsourcing partner. Imagine that you are organizing a critical business event and there is a truck load of tasks that need to be completed. You are fighting against the clock and you absolutely cannot mess around with it. If everything goes well it may rain in business opportunities for your company. Bottom-line; get it done professionally without spending a fortune.

How will you plan it?

Here are some options that you may consider:

Do onshore outsourcing or local outsourcing for your marketing activities to vendors who clearly understand your prospects to bring more effectiveness to your promotions. Outsource your regular phone calls, intimation, invitations, and registrations to onshore centers since country-specific knowledge and cultural association is essential for these activities.

Outsource your additional back-office, documentation, data management work to offshore locations like Asia or Russia. They offer great value for money and it comes in real cheap. Offshore centers can also work across time-zones to ensure that your tasks get done 24x7.

Sounds great, but if you look closely, this involves two models of outsourcing: offshore and onshore outsourcing. Even though it's difficult to manage all these activities simultaneously, if engaged, this combination packs utmost effectiveness, efficiency, and cost benefits.

How would you do it?

You have the following options:

• "I will engage different vendors specializing in different outsourcing models and manage all these vendors separately. I understand that this involves managerial challenges."

• "I will better focus on my core activities and near shore all these tasks to a single vendor, who primarily handles marketing, as this is the key activity. I can compromise on the effectiveness and cost of other activities."

• "I will look for a professional service provider, who internally uses these two models of outsourcing (right-shoring) and gives me the best of all models. I need not compromise on effectiveness, managerial challenges, and costs. I can also completely focus on other complex issues which need my direct and undivided attention."

When should you select onshore outsourcing?

From a business process perspective, the two major advantages of onshoring are local language/ communication and knowledge of country specific product/services and culture. For example, health insurance, transportation, and education are very country specific areas and may require onshore expertise to carry out some parts of the tasks. Similarly, where frontend communication is important, people with local language and accent are best.

When should you go for offshore outsourcing?

Offshoring has huge cost advantage and there are many services that are well done in offshore locations. These include software development, data management, website maintenance, document management, product manufacturing, and many other technical services. As part of offshoring, one can select the right type of country for the right type of service. For example, India and Russia might be good fit for software development, while China would be great for manufacturing. A near shore country like

Canada or Brazil may be a good match for something that requires close communication skills but not much country specific knowledge.

What's your call?

"Right-shoring" is now one of the most preferred ways to outsource your non-core business activities. Right-shoring vendors achieve peak performance using the right combination of outsourcing models for all the operations that you outsource. Right from crossing boundaries to managing diversified operations to achieving maximum effectiveness at minimal costs, they clearly understand the specifics of each outsource-able geographic location, its people, resources, wage patterns, governments, and its policies, and get the best of all worlds for your business.

Almost all tier 1 telecom and IT companies in North America have embraced right-shoring as their strategic operational model.

This model not only helps you organize business activities but also adds great effectiveness and savings on all your regular outsourcing tasks. So before finalizing your outsourcing partner just keep these things in mind. It's always better to look for right-shoring service provider even though your outsourced operation does not require it right now; you may never know when you would need one, as your business is only headed in one direction, i.e., UP.

Key terms used in this article and their meanings:

Offshore Outsourcing: Hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed.

Onshore or Local Outsourcing: Outsourcing business activities to vendors in the same state/region.

Near-shore Outsourcing: Outsourcing jobs to a nearby foreign country.

Right-shore Outsourcing: Restructuring a company's workforce to find the optimum mix of jobs performed locally and jobs moved to foreign countries.

Related Articles
  Why small businesses are important for the Canadian economy
  Why Small Business Fail
  Top 7 reasons to hire a small business marketing consultant
  Three Reasons Start-ups Fail
  W is for Why is my marketing not working?
  Reasons to Avoid Buying a Franchise
  Small Home Business Ideas Targeting Local Offline Businesses
  Reasons to Succeed
  Putting QuickBooks in the Cloud - Why Businesses Do It
  Decision-Making FAQs
  2.0 Background: Entrepreneurship and Small Business Enterprise Growth in Uganda
  5 Reasons for Starting a Business from Home
  Outsourcing Payroll Has Benefits While PEO's Do Much More
  Five Tips For Building A Wildly Successful Team Based Business
  Why you should stick to one business idea
  Small Business Loans for Women
  Why Small Businesses Won’t Double Their Revenue This Year
  Is Entrepreneurship For You?
  The Rise of the People-Less Business
  Green Certification for Small Businesses

Article Tags: rightshore outsourcing, small business cost savings, Small business outsourcing



Related Forum Posts
Startup Challenges - Kevin - it's a great read - you should pick it up! John - what kind of services are you offering? Your signature says "Providing Big Business Resources to Small Businesses" I have always found big companies to be hard to work with and slow to make decisions but smaller companies are more risk-tolerant and understand the online world.
Re: 10 Reasons Who Startups Fail & Book Recommendations - Great post,but please edit the headline. I presume it is "10 Reasons Why Startups Fail & Book Recommendation
Exclusive: Interview with Results - Hi Forum Members, I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles). As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business. This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business. I am looking to interview about 30 businesses across North America over the span of 3 months. At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews. I would like to extend this opportunity to members of the Forum. If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM. Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.
These maybe the coldest franchises out there: - Here are the worst 15 performing franchises in regards to having the highest Small Business Administration (SBA) loan failure rates. The list is dotted with sub sandwich shops, fitness centers and car shops. WORST FRANCHISE LOAN FAILURES Failure % 1 OBEE'S SOUP SALAD SUBS 55.56% 2 LADY OF AMERICA 41.94% 3 COUNTRY CLUTTER (BED & BREAKFAST) 41.18% 4 COPY CLUB 36.36% 5 ALL TUNE AND LUBE 35.71% 6 PICKERMAN'S 35.71% 7 PHILLY CONNECTION 35.59% 8 ROLY POLY ROLLED SANDWICHES 34.78% 9 COTTMAN TRANSMISSION 34.48% 10 HAIR COLOR EXPRESS 33.33% 11 LEE MYLES AUTOMOTIVE TRANSMISSIONS 33.33% 12 GODFATHER'S PIZZA 33.33% 13 SMOOTHIE FACTORY 33.33% 14 BLIMPIE 31.39% 15 GOLF U.S.A. (RETAIL GOLF EQUIP.) 30.77% Source: Small Business Administration, SBA Loan Performance Within Franchise Code for the Period of FY 2001 - 2005
Re: Biz Plan Competition - i just wanted to say that posting Small Business Events on CanadaOne is a great resource. Thanks Julie!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Sales Courage and Resilience

Work at home Opportunities for the Disabled

Counselling - Who Needs It?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.