If you’re a business owner looking to delegate tasks, onshore outsourcing is a smart way to save time and money.
It simply means partnering with an outsourcing company in the same country.
But how does this option cut costs compared to hiring an in-house team? Here’s a quick table that shows the difference:
| Expense Type | In-House Hiring Cost (USD) | Onshore Outsourcing Cost (USD) |
|---|---|---|
| Recruitment | $4700 per employee | $0 |
| Training | $774 per employee | $0 |
| Office and Equipment | $3000 per employee | $0 |
| Benefits & Payroll | $15,000 on average | $0 |
| Other Expenses | $5,000 per employee | $0 |
| Total Savings with Onshore Outsourcing | At least $28,000 | |
With this in mind, I’ll walk you through the key questions in this blog:
- What is Onshore Outsourcing?
- How does it differ from Offshore Outsourcing?
- How do you pick the best Onshore Outsourcing company?
Cool. So, let’s dig in!
So, What Exactly is Onshore Outsourcing?
Let’s start with the definition first: “Onshore Outsourcing is when a business owner decides to outsource certain services to a BPO company located in the same country.”
In other words, the business and the outsourcing service provider both work within the same country.
So, how is this beneficial for you?
Let’s say you’re planning to scale your business. At this point, you usually have two options in front of you:
- Expand your internal team by hiring new employees
- Partner with an onshore outsourcing company
Now, which option should you choose? If saving time, money, and effort is what you want, then onshore outsourcing is the best option for you.
When you outsource onshore, you reduce several expenses, including:
- Day-to-day operational costs
- Office rent and equipment expenses
- Recruitment and hiring costs
- Employee management and HR handling
- Training programs and onboarding costs
- Buying and maintaining business software
There is a reason why 66% of the businesses in the USA choose to outsource at least one of their services.
Why Businesses Choose Onshore Outsourcing?
Now that you know what onshore outsourcing stands for, and how it helps you save budget.
But cost-saving is just one part of the story. There are other reasons as well that make this outsourcing an ideal option.
Keep on reading, and I will explain all the benefits of onshore outsourcing in this section:
1. No Language Barrier
Think about it – trying to explain tasks in a different language often leads to confusion and wasted time. This usually happens when you join hands with an offshore BPO company.
With onshore outsourcing, you can say goodbye to that problem.
Since the outsourced team speaks the same language and understands your tone, they deliver faster results and resolve errors quickly – this improves your Client Satisfaction Score (CSAT).
| Factor | How Onshore Outsourcing Helps |
| Day-to-Day Communication | Everyone speaks the same language, so conversations are easy. |
| Giving Instructions | The outsourced team can understand the instructions right away |
| Resolving Issues | Problems get fixed faster with no confusion. |
| Customer Satisfaction | Enhanced performance = happier clients and better CSAT |
2. Easier to Scale Up or Down
When you’re managing an in-house team, scaling is a real headache.
To scale up, you need to go through the slow and expensive process of hiring new employees.
And when projects dry up, you’re forced to make tough decisions like layoffs.
But Onshore outsourcing makes this easier for you.
Need more support? Your provider can quickly add resources. Need less? They simply scale down.
Problem solved!
3. Better Quality Control
With onshore outsourcing, you delegate projects to an external team … but that doesn’t mean you lose control.
Studies show that companies working with local outsourcing partners have a higher quality level – they also find it easier to conduct quality checks.
But why is that?
When your outsourced team is locally based, you give feedback in real time and ensure stronger oversight – this leads to better deliverables and happier clients.
4. Simpler Compliance with Regulations
Every outsourcing provider must follow the laws and regulations of the country where they operate.
The real advantage of domestic outsourcing is that you don’t have to deal with complex foreign regulations or international data protection policies.
Both parties – you and your service provider – follow the same legal framework, and that means you don’t have to worry about any legal troubles.
| Area of Compliance | Offshore Outsourcing Company | Onshore Outsourcing Company |
| Data Protection | Must follow data protection laws depending on their location (i.e, GDPR in Europe, etc.) | Covered under the same national data privacy laws you already follow (CCPA, HIPAA, etc.) |
| Employment Laws | Different labor laws and minimum wage requirements | Same local labor laws and regulations as your business |
| Industry Regulations | Industry-specific laws are different in different countries | They comply with the same industry standards you follow |
Onshore Outsourcing vs Offshore Outsourcing: What You Need to Know
While they may sound similar, Onshore and offshore outsourcing are different concepts. Understanding the differences is key for every business looking for outsourcing partners.
| Attribute | Onshore Outsourcing | Offshore Outsourcing | Winner |
| Language and Culture | Both parties share same language | Language and Accent Differences | Onshore Outsourcing |
| Cost | Higher labor rates | Cheap labor | Offshore Outsourcing |
| Time Zone Difference | Same working hours | Difference in time zones can delay communication | Onshore Outsourcing |
| Global Talent | Access to local talent only | You get access to more agents in a specialized niche | Offshore Outsourcing |
| Compliance with Regulations | Easier to follow local laws | Must comply with foreign laws and protocols | Onshore Outsourcing |
Why Choose HiredSupport as Your Onshore Service Provider
Now you know exactly what onshore outsourcing is, as well as its benefits.
But the lingering question remains: As a US business owner, which onshore outsourcing company is the best for me?
Based on client success stories and user reviews, I recommend HiredSupport.
Their Clutch rating of 4.9/5 underlines their reputation as a BPO service provider. Even better, their plans start at just $30 per hour – the most affordable rate!
Simply fill out this form, and our team will get in touch with you soon!
FAQs
1. How does Onshore Outsourcing work?
In Onshore Outsourcing, you select a third-party service provider located in the same country to take care of certain projects. This allows you to focus on core business-related tasks.
2. What are three common types of outsourcing?
These are the three types of outsourcing:
- Onshore outsourcing
- Offshore outsourcing
- Nearshore outsourcing
3. Is HiredSupport a reliable onshore outsourcing BPO service provider?
Absolutely yes! If you are looking for an onshore outsourcing partner in the US, HiredSupport is the best choice. It offers quality support services starting from just $13 per hour.
