Building an offshore team for successful outsourcing

Should you build an offshore team or hire one star performer?

Building an offshore team beats hiring a single star, because a team spreads the work, prevents burnout, and keeps your operations running when one person leaves.

Here is the core of Mike O’Hagan’s view at a glance:

• A small offshore team is safer than betting on one “unicorn” hire.
• Good people plus real training drive outsourcing success.
• Flexible processes let you scale and expand with ease.

Outsourcing rewards your business when you do it right. Besides the cost savings, it adds value to your operations. As a result, your work gets more efficient.

There is no single formula for success here. However, reliable people and flexible processes raise your odds. In fact, many firms face nightmare stories when they bet on one staff member to be a “unicorn.” So industry experts like Mike O’Hagan suggest building a small offshore team instead. Mike covered this in episode 374 of the Outsource Accelerator Podcast with Derek Gallimore.

The pros of building an offshore team vs hiring a single “unicorn”

In his experience, Mike saw many startups “crash and burn” without a team to handle the work. The reason is simple. They lean on “unicorns” to make the company grow.

Unicorn employees sound ideal. Still, they do not always fit your company. For example, a culture mismatch alone could cost about 50% to 60% of their yearly salary, according to SHRM. As a result, it can sour your whole view of outsourcing.

At the same time, unicorn staff can “get up and leave” once they burn out. So you are left exposed. On the other hand, an offshore team gives you a head start. In addition, it offers clear advantages you cannot get from one hire. These offshore staffing benefits add up quickly.

Avoid disruptions

When you rely on a single offshore staff member, risk grows. For example, work can stall once they quit or become unfit for the role. However, an offshore team saves you from this. Your remaining workers can cover those functions for a while.

Prevent burnouts

An offshore team helps you and your staff prevent burnout at work. Because tasks are shared evenly, no one feels overworked. As a result, people stay fresher and more focused.

Lessen turnovers

Building an offshore team lets you create a good work environment. So satisfaction goes up. In turn, people stay longer and your turnover rate drops.

See better results

You also see your functions improve with a team. Compared to one hire, you get more efficient workload distribution and better teamwork. As a result, output rises. It also helps to know the top skills to look for in offshore staff.

Expand more easily

Finally, a small team gives you a stronger base for your outsourced services. So you can train new hires with ease, since a team already helps you do it. As a result, you scale and expand your departments faster.

Tips in building an offshore team

Mike believes offshoring “will work for [a business] brilliantly” with the help of “people” and “training.” Here are a few tips for building an offshore team that gets great results. For more, see these best practices for thriving with offshore teams.

Start with a few employees

It is best to start your journey with two or more hires. So you divide tasks across people, not just one staff member. In addition, a few people onboard make it easier to train and delegate when you expand.

Hire and train people with less experience

Mike observed that training your offshore staff with less experience and strong core skills gives “more wages, [better] loyalty, and less staff churn.”

Many firms look for offshore staff with deep experience. They may be skilled enough to deliver. Still, the output can miss your expectations. However, when you train people with less experience, you can teach your exact process. As a result, you build more engagement with your team.

Make your processes flexible

One common mistake is a rigid, fixed process to delegate. So Mike suggests more flexible processes when you outsource. According to him, firms can keep at least “80% of the same way.” Meanwhile, they leave room to test new ways to work. As a result, you can outsource your services almost anywhere.

Find ways to encourage interaction

Mike stressed that outsourcing is not just about “[delegating] processes” and then “[standing] back” to watch. Instead, engage with your staff. Make them part of your operations.

Offshore employees want to feel like an extension of your business. So encouraging team interaction and collaboration is the best way to lift productivity, satisfaction, and loyalty. For example, organize visits and virtual meetings on a regular basis. In addition, you can pair them with in-house teams on a project. Many global firms do this while outsourcing to the Philippines.

Mike O’Hagan in helping clients outsource their services

Mike’s Business Tours has helped hundreds of clients grow their outsourcing know-how. As a result, many moved their services to the Philippines with confidence.

Mike runs a three-day intensive tour in Manila and Clark. So businesses get a close look at how outsourcing works there. In addition, he keeps talking with global companies about offshoring and how it helps them scale. Through Shore360, Mike and his team also help clients solve their outsourcing and offshoring needs. For some, a flexible staff leasing model is a natural next step.

Reach out to Mike through his email, [email protected], and LinkedIn account. Also, listen to episode 374 of the OA podcast here.

Answering your frequently asked questions

Why build an offshore team instead of hiring one person?

A team spreads the work across people. So one resignation will not stall your operations. In addition, it lowers burnout and supports steady growth.

How many people should an offshore team start with?

Mike suggests starting with two or more hires. So you can divide tasks from day one. As a result, training and delegation get much easier when you scale.

Is it better to hire experienced or less experienced offshore staff?

Less experienced hires with strong core skills often work well. For example, they bring better loyalty and less churn. So you can train them in your exact process and shape the output you want.

Where do most businesses build their offshore teams?

The Philippines is a top choice for many firms. It offers skilled talent and strong English. In addition, support partners make setup simpler. You can also build an IT offshore team the same way.