Have you ever thought about offshore hiring but are still determining if it suits your company? Or have you decided to do offshore hiring but need guidance on how and where to begin?
As 2022 comes to a close and companies brace for what 2023 has in store, many businesses and organizations are trying to weather myriad challenges when hiring top talent in the tech sector.
Talent Shortage in 2023 And Beyond
As technological innovation continues at breakneck speed, it inevitably creates a need for skilled tech talent to build and maintain existing and emerging digital technologies.
Despite high-profile layoffs from big tech companies, many CEOs and hiring managers attest to the fact that top tech talent is still a challenge to come by. A Gartner survey revealed that the talent shortage remains one of the bottlenecks for many tech companies to the adoption and maintenance of emerging technologies. Many companies have singled out the talent shortage as the top barrier for their company to go full blast in digital transformation.
This is why some companies have come to rely on offshore hiring to mitigate this lingering talent shortage.
Offshore Hiring: The New Mainstream?
Offshore hiring refers to companies hiring and forming a team of workers from overseas. Though it already existed as a hiring practice even before the pandemic. This went further into the mainstream when the workforce shifted to remote work.
Despite being a considerable disruption, many employers and hiring managers still feel more confident about delegating responsibilities and daily tasks to a human workforce than an AI counterpart.
So, how prevalent has offshore hiring or staffing become nowadays?
A report from Deloitte revealed that offshore staffing will be a $6.8 billion industry in 2023. Furthermore, a similar Gartner survey showed that 80 percent of hiring managers and company leaders had increased their offshore staffing budget by at least 5 percent beginning in 2020.
Here in the US, it is already a fact that many companies have come to rely on offshore hiring. Sixty-eight percent of companies in the US are engaged in offshore staffing. On the other hand, in the UK, 48 percent of companies have likewise engaged in offshore hiring.
The truth of the matter is that offshore hiring has indeed become mainstream.
Benefits of Offshore Hiring
There are plenty of reasons why more and more US-based companies have made offshore staffing a salient solution to their hiring challenges. Here are just some of the myriad benefits of offshore hiring:
1. Low Labor Cost
This is the top reason that makes offshore hiring a winner, especially for startup companies whose owners are very keen on growing their companies.
Offshore hiring gives your company access to a virtually limitless pool of global talent, with lower wages than in more developed nations such as the US, UK, Canada, or Australia.
2. More Savings for Your Company
Since your company will be able to save on labor costs and even office space as your offshore staff can work from anywhere. You stand to save more financial resources, which you may use in other critical areas of the business, such as infrastructure, digitalization, or talent training.
3. Round The Clock Business Operations
Another boon for companies with offshore staff is that the organization can push for continuous business operations since your team operates under multiple time zones.
Because of this, you are sure that your daily operations remain unimpeded even when sleeping. Workflow remains continuous despite inclement weather in one area, sociopolitical instability in certain cities or countries, and other usual disruptions experienced by companies whose workforce is concentrated solely in one geographical location.
4. Increased Organizational Sustainability
The challenges of scaling up can be overwhelming, especially if you are running a startup. This is especially true when hiring talent. You need to balance skill and the financial investment of hiring a highly-skilled employee.
Offshore hiring can streamline this because you can have a more diverse pool of talent with a broader range of financial investment. You can hire tech talent proportional to how much you can pay them.
5. Gain Access to New Markets
Companies that engage in offshore hiring eventually open their organization to new markets.
Your offshore staff may understand regional and global trends, risks, and untapped opportunities better. They can help you identify markets where you can expand and open new labor markets for you and your business. They can also guide you in tapping more unique markets to introduce your products and services.
Offshore Hiring in the Tech Sector
Suppose you are seriously considering offshore hiring for your company or organization; what sectors in the tech industry are ideal for offshore hiring? What countries must you consider in each of these sectors?
1. Software Development
Tech services company Commit recently conducted a study that forecasted software development vacancies filled through offshore hiring would expand by as much as 70 percent in the coming year. Big tech and retail companies such as Coinbase and Shopify have hired via offshore staffing en masse this year, specifically in roles relating to software development.
The days of opening secondary offices and satellite headquarters in cities outside the US are now considered relics of a bygone era. Offshore hiring has gone mainstream, and most companies have hired software developers from countries like India, Ukraine, Poland, Brazil, South Africa, Mexico, Malaysia, and Argentina.
Since competition for competent software developers remains stiff, not only in the US but anywhere in the world. As a US-based employer or hiring manager, prepare to offer additional perks to your offshore employees, such as paid time off, flexible working hours, and performance bonuses.
2. Information Technology
If you find it very challenging to hire top talent to fill your vacancies in IT, then offshore hiring may be your next best bet.
Offshore staff may fill IT roles such as computer network architects, computer systems analysts, database administrators, hardware engineers, and information systems managers.
Demand for data analysts, for example, is consistently increasing. Data from August of this year showed that 68.6 percent of all companies need to add at least one more data analyst to their IT teams. Some companies actually need to fill entire teams and even departments with data analysts.
In this regard, where should you look as an employer or hiring manager?
Consider countries like Mexico, the Philippines, and Bangladesh, as well as Latin America’s vast pool of IT professionals to fill in the gaps.
3. Tech Support
Tech support roles are essential in the after-sales process and in ensuring customer loyalty and retention. Along with technical skills to mitigate technical concerns, tech support staff must also be excellent communicators – aptly trained in the ying of technical competence and the yang of customer service.
Though many customers still prefer to talk to the tech support staff that is onshore or US-based, countries like the Philippines and South Africa also have a good track record regarding tech support roles.
Employers looking for even more affordable offshore hiring options may also consider Indonesia and India for tech support workforce. Keep in mind that employers and hiring managers are responsible for ensuring that their offshore staff gets the appropriate training for these roles.
Do you need help in hiring top tech talent? The solution may be nearer and much closer than you think. Consider working with the Fox Search Group for your tech talent needs. You do not have to look far and wide for top tech talent. Reach out to us today!