The Benefits of Offshore Outsourcing to Malaysia

You can save a greater amount of money if your outsource IT and other services abroad. Your savings may go up to as much as 75%. However, apart from savings, there are certain risk involved. Lets go deep into the topic.

Running your own business can be a pretty demanding job. Given the intensely competitive business environment of modern times, one has to constantly evolve to meet with the challenges of the market. Entrepreneurs and Mangers always look for newer and more efficient techniques to run business. Modern day business has been driven by a simple idea-‘increase productivity and reduce costs’. This constant endeavor has led to the birth of a revolutionary concept in business-the concept of offshore outsourcing. In the following article we would explore the concept and benefits of offshore outsourcing and the main advantages of outsourcing to a country like Malaysia.

What is Offshore Outsourcing?

Offshore Outsourcing, as the name implies, is the process where another party is hired to perform some of the business functions. Hence the word outsourcing is used to symbolize that the ‘source’ which completes the task is ‘out’ of the company. Now the company to which the function is outsourced is by definition located in another country. Hence the word ‘offshore’ is used. Today, offshore outsourcing functions can be broadly classified into four main types:-

• Information Technology Outsourcing-which involves the outsourcing of computer or internet related work.

• Knowledge Process Outsourcing-Which involves outsourcing of knowledge intensive work.

• Business Process Outsourcing- Which involves outsourcing of a diverse range of business functions

• Software Research & Development

The advantages of Outsourcing

Cost Savings- The main advantage of offshore outsourcing is the cost savings which allows a company to have a higher profit margin. The labor costs of countries like Malaysia in much less than the developed countries like UK or the USA. Hence you would be saving a lot on the salary of your employees. On top of that, you would also get additional savings on expenses like health insurance, worker’s compensation, unemployment taxes, social security and other taxes. You do not require training the staff thus saving on training costs as well. This single advantage has made outsourcing an effective way to reduce the costs of operations of any business-large or small.

Other Benefits-Apart from cost benefits, outsourcing also offers other benefits as well. For example, it helps you maintain high level of quality as you often get highly skilled labour at cheap prices in most offshore outsourcing destinations. Outsourcing also gives you a control over productivity. You can easily increase or decrease the level of production or stop production altogether without any hassles. This truly puts you in the control of your own business. It also allows you to be flexible with your work hours as in some cases- work would be done only when you instruct it to be done.

Why Choose Malaysia as Your Offshore Destination?

Malaysia has always been a favored offshore outsourcing destination for businesses around the globe. Malaysia offers cheap but highly skilled labor. The Malaysian worker is skilled in diverse fields such as IT, telecommunication, customer service and support, professional web design and web development, manufacturing and much more. All this makes Malaysia the most ideal location to outsource your business processes and functions.

What are the risks involved?

Beneficial as it may be, outsourcing to countries such as Malaysia is not completely devoid of risks. One of the major risks is falling in the hands of unprofessional company. This problem gets worse since you would not visit this country. In order to stay safe from such risks, you should only trust a professional outsourcing company Malaysia for your job. Do a little bit of research on the web so select the right company for the job. So, outsource your business process to Malaysia and realize what is truly meant by ‘low costs, high production’!

Synctech has many years of experience in doing outsourcing work in the field of web hosting, domain registration, website security and web design solution