Employees are the lifeblood of every organisation. From startups to big corporates, hardworking and dedicated employees sit at the heart of every successful business. However, in today’s world, employees aren’t just limited to in-house. With the growth of every business sector including the Accounting industry, outsourcing employees(or even) has become quite common around the world. The UK outsourcing industry is one of the largest in the world offering onshore staffing opportunities to businesses in the UK.
Outsourcing a part of your business process is a great way to infuse efficiency in your current business model. But outsourcing comes with mainly two options(discussed below); Onshore and Offshore and at times it can be a hard choice to decide what’s the right option for you.
Here we will be discussing the pros and cons of Onshore staffing:
What is Onshore staffing and how it is different from outsourcing?
Onshore staffing is an outsourcing category that involves bringing in a third-party to get the work done from within the organization’s own home country/local. Onshore staffing means that you are working with an outsourcing company located in your area/country.
While working with an onshore outsourcing company has many benefits, there are some cons as well. Let’s shed some light on both these aspects:
Pros of Onshore Staffing:
- The first and foremost important benefit that you can avail by outsourcing your Accounting needs onshore is that it allows you to physically collaborate with your outsourced team as and when required. Moreover, since the team is local, there usually aren’t any language barriers or communication barriers. Onshore staffing can help boost your productivity with quick response time, thereby uplifting your Accounting service delivery.
- No Time zone difference barrier: Timezone difference when outsourcing is one of the most common issues that Accountants have to face if they outsource offshore. Even though this difference can be leveraged, however, it puts a halt on various Accounting tasks that need your involvement. But this isn’t the case with Onshore Staffing since both the parties are working at the same time.
- Flexibility to get the work done whenever needed: Following up on the above point, since the outsourced team’s time is the same as yours, you can get your work done as and when needed.
- Easy hiring and onboarding: This is one of the key benefits of onshore staffing. You don’t have to trust the Google reviews or online reputation of the outsourced firm and give them the job which can be a case in offshore hiring. On the contrary, you can simply have a face-to-face discussion with the outsourcing firm and then hire them based on their industry knowledge.
- With onshore outsourcing, you also have the option to sit down and discuss if any reforms are needed in contract policies or if you have new policies or software integrations that need to be sorted out.
All in all, onshore staffing can significantly reduce the level of dependency on both the parties.
Cons of Onshore Staffing:
- No full control over all the processes: One of the drawbacks of outsourcing including offshore is that you don’t have full control over the work done by the outsourced firm. However, you can still review their work. Accountants don’t have direct, in-person oversight which can be a problem at times.
- Hidden Costs involved: This is another drawback that puts a big question mark over the worth of onshore outsourcing. Costs like onboarding, training and development of an onshore team can be both time consuming as well as costly. Moreover, since the outsourced firm is based locally, the expenses are also applicable in terms of local currency which can be pretty expensive as compared to offshore outsourcing.
- Risk of Exposing Confidential Data: The most serious concern that comes with Accounting outsourcing is the security of the financial data being shared. And while Onshore firms will be well-aware of the risks involved in case of embezzlement and data breaches, there may arise cases when this data can get leaked within your in-house team which can give insights on your financial position, clientele, etc.
Well now you know better what you are signing up for when you are engaging with an onshore outsourcing firm.
Hope this helps you make better decisions on your part!!