Which Shore Is Best for Offshore Outsourcing?

offshore outsourcing

Dedicated business leaders strive for the best: the best team around the conference table, the best reputation with customers, and the best solutions for their challenges. The concept of “best” appeals to our desires for security, quality, and achievement.

But how do you determine the best option? The “best” is subjective, depending on individual needs and preferences. For instance, the best shoe for a marathon runner won’t be ideal for a cross-country hiker.

The same applies to leaders considering outsourcing. Should you partner with a provider in the Philippines, Brazil, or Malaysia? While India might be the best choice for one company, Argentina may be better for another. Here, we outline key considerations when looking for a BPO (business process outsourcing) partner.

Comparison Factors

To choose the ideal location for your CX outsourcing, understand your company’s specific needs and priorities. Consider these key factors:

Cost

Outsourcing is popular for its cost-saving benefits. Offshore outsourcing is typically more cost-effective than onshore or nearshore options due to lower labor rates. Consider how much you need to save by outsourcing. Factor in travel costs to the location—how often will you or your team need to visit the BPO partner in person?

Communication

Communication is critical in your relationships with your BPO and between the BPO and your customers. Language proficiency varies by location. Is the local workforce fluent in your target customers’ language(s)?

Time zone differences also impact communication. Some overlap between your time zone and the CX center’s time zone can enhance collaboration. How much overlap do you need for effective communication?

Skillset

The complexity of your business determines the required skills. Some regions excel in specific skill sets due to their educational systems, access to technology, and industry focus. What skills does your BPO need to succeed with your business?

Infrastructure

While all shores offer essential infrastructure, verify the specifics of your provider’s location. Established offshore BPO hubs have invested in reliable power grids, high-speed internet, and modern data centers. What is the region’s reputation for infrastructure and service guarantees?

Security

All locations are vulnerable to cyberattacks, human error, and data breaches. Some offshore locations may have less stringent cybersecurity measures or data protection laws. Mitigate these risks with thorough research, strong contracts, data encryption, and independent audits. (For more, read our blog post, “How Can the Risks of Outsourcing Be Mitigated?”)

Weigh Your Options

A structured process can help you determine the best outsourcing solution for your company. Follow this three-step process: 

  1. Assign weights to each factor using a weighted scorecard.
  • Identify relevant factors to consider.
  • Rate each factor (e.g., on a scale of 0–10 or 1–5) based on its importance.
  • Assign a weight (percentage) to each factor, ensuring the total equals 100%.
  • Multiply each factor’s score by its weight and sum the results for a final weighted score.
  1. Shortlist potential shores and locations.
  • Define criteria for your BPO provider.
  • Perform an initial screening against your criteria.
  • Compare top options across essential and desirable criteria.
  • Decide how many options to shortlist for further evaluation.
  1. Evaluate each shore based on your weighted factors.
  • This final step helps identify the location that best aligns with your priorities.

After determining which shore to focus on, consider reading “Why Size Matters With Business Process Outsourcing Companies.”

A Guide Through the Process

If this process seems overwhelming, we understand. At AdviseCX, we have guided many business leaders in selecting the best shore and the perfect BPO provider for their company.

Through our outsourcing advisory services, our team of experts can guide you through the process, ensuring you make the best decision for your business needs. Contact AdviseCX today to learn more.