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Sustainability’s Triple Bottom Line in Offshore Delivery Models: Profit, People, Planet 

November 29, 2023

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Sustainability's Triple Bottom Line in Offshore Delivery Models: Profit, People, Planet 

Companies face both old and new challenges that impede their success. Aside from the usual competition with other businesses, leaders now face the difficulty of filling their ranks with skillful and dedicated teams. McKinsey even reports nine out of ten executives and managers acknowledge their organizations are currently experiencing skill gaps or anticipate its emergence in the next five years.¹ 

While numerous candidates seek positions, the scarcity of specific skills and escalating demand complicates the hiring challenge. Plus, organizations are also expected to show corporate social responsibility and ecological consciousness throughout their operations.  

So, how can companies meet these heavy demands without breaking the bank? The optimal solution is embracing offshore delivery models facilitated by reputable third-party staffing firms. 

Sustainability in Using Offshore Models 

As companies consistently see the need to balance profitability and their social and economic responsibilities, they look for models to help their business succeed in all three domains. This acknowledgment has led to a paradigm shift in how organizations approach and consider offshore operations. 

In the past, some leaders deemed offshore methods as inefficient and avoided them entirely. However, the tide has turned, with sustainability-focused companies embracing offshore development models. 

Leveraging offshore teams offers a sustainable and innovative approach that aligns with a company’s financial, environmental, and social objectives.  

Benefits in the Financial Domain 

The following are detailed explanations and examples of the advantages of utilizing offshore services from trusted third-party firms. 

1. Cost Reduction 

Zippia reports that 59 percent of organizations use offshore models mainly to reduce operational costs.² By outsourcing the experts they need for projects, companies enjoy lower expenses than finding people themselves. 

Instead of paying massive amounts for job posts and ads, you can pay a fixed rate for your third party’s offshore services. Moreover, some offshore locations offer more competitive wage rates, allowing companies to pay less for labor expenses. 

Read More: The Benefits of Temp Employees for Tech Firms 

Once experts are onboarded, companies can still observe further cost reductions. More people will be working on your projects, but only your initial workforce will use physical office spaces, so you won’t need to allocate extra funds for office space and utilities. 

2. Increased Revenues 

With a reduction in operational costs comes an increase in overall revenues for your company. Parts of the budget saved could be allocated to other sectors of the business to improve them. For example, your company savings could be reinvested in research and development of new products and services. You can also use it to fund the latest projects and innovations to help your business stay competitive. 

Another possible way offshore delivery can increase your revenues is through attracting more clients and customers. Since cost-effective operations result in more competitive pricing and better product or service quality, you can attract more clients, leading to higher sales and growth in revenue. 

3. Market Expansion 

Offshore delivery empowers companies like yours with workforce flexibility and agility. This allows your business to quickly expand into new markets and explore new investments without worrying about financial constraints. 

Leveraging offshore resources enables your entry into markets with skilled experts, increasing the likelihood of success. Diversifying revenue streams also reduces dependence on a single market. It enhances financial stability in the face of economic fluctuations and industry challenges. 

Benefits in Human Resources 

Here’s how offshore operations can benefit the human side of the organization.  

1. Expanded Talent Pool 

Offshore delivery models open doors to a more diverse talent pool. And reputable companies providing offshore services are typically staffing firms with vast networks of professionals and experts across various fields and industries. With a third-party company, you can rest assured that the people working on your projects are qualified to complete their assigned tasks. 

Aside from having easy access to experts when you want to upscale your workforce, you also receive access to specialized skills and previously unavailable candidates through offshore delivery. Different barriers, such as different time zones and locations, are lifted when working with an offshore team. This makes the potential for having top talent greater with third-party aid than without. 

2. Diverse Workforce 

Since your company can now hire people despite their geographical locations, the offshore outsourcing model allows you to diversify your ranks. Based on new research, having a company with diverse employees leads to better decision-making.³ This is because many different perspectives and voices contribute to finding the best possible decision. 

Moreover, these perspectives are generated from different experiences that could provide fresh insights into the issues being solved. Having diversity and implementing inclusion are proven ways of enhancing a company’s creativity and competitiveness in the market. 

Read More: The Importance of Diversity in Tech Companies 

3. Ethical and Legal Compliance 

Companies in any industry are required by law and by ethics to follow rules set in every state and country. For a company like yours focused on its growth, it can become quite difficult to achieve diversity while solely taking care of all legal and ethical compliance for each of your people outside of your location. This is where outsourcing services shine. 

Read More: Navigating Compliance and Legal Considerations in Staff Augmentation for Employers 

Every staffing company providing offshore resourcing understands the importance of complying with legal and ethical practices. For example, ethically speaking, companies must provide fair pay and safe working environments for their employees. On the legal side, companies need to focus more on the finer details. Fair wages in one state can be different in another.  

So, instead of learning about the different laws in various offshore locations, hiring a trusted offshore delivery provider is much better. 

Benefits in the Environmental Domain 

This domain has fewer benefits since it revolves only around one thing: conservation. Although there isn’t a list created, offshore delivery’s advantage to the environment is still a huge deal. It helps companies conserve the resources they use, the energy they spend, and the carbon footprint they leave as they climb toward their success. 

A good staffing firm offers sustainable offshore practices that reduce energy consumption on a daily basis. For example, they could utilize renewable energy sources and make an effort to reduce their consumption during day-to-day operations.  

Additionally, because offshore team members don’t commute daily to the office, their carbon footprint from transportation is considerably smaller than that of regular employees. With further projects and sustainable practices, having offshore engagements would become more environmentally friendly than hiring people onshore or traditionally. 

REAP THE FINANCIAL, SOCIAL, AND ECONOMICAL ADVANTAGES OF OFFSHORE MODELS WITH RASO360 

At Raso360, our ultimate goal is to change the hiring landscape by positively evolving intentions. We value more than just your success – we also care about your growth throughout the entire process. You can trust us to deliver if you’re looking for reliable experts while remaining financially, socially, and economically responsible. Reach out to us to start your journey towards sustainability! 

References 

1 Survey. “Beyond Hiring: How Companies Are Reskilling to Address Talent Gaps.” McKinsey, 12 Feb. 2020, https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/beyond-hiring-how-companies-are-reskilling-to-address-talent-gaps. 

2 Boskamp, Elsie. “40+ Vital Outsourcing Statistics [2023].” Zippia, 15 Feb. 2023, www.zippia.com/advice/outsourcing-statistics/

3 Larson, Erik. “New Research: Diversity + Inclusion = Better Decision Making At Work.” Forbes, 21 Sept. 2017, www.forbes.com/sites/eriklarson/2017/09/21/new-research-diversity-inclusion-better-decision-making-at-work/

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