What is offshoring?
Offshoring is the practice of moving business functions, roles, or operations to another country. Businesses often use offshoring to access skilled talent, reduce costs, expand capacity, or support growth.
An offshore team can work as an extension of the business, handling tasks such as customer support, software development, finance, or administration.
Why do businesses use offshoring?
A 2025 survey found that 76% of UK employers struggled to fill roles because they could not find people with the right skills. As a result, many businesses are looking beyond their local market and building offshore teams to access a wider talent pool.
Offshoring can help businesses:
- Access a larger pool of global talent
- Reduce recruitment and operational costs
- Expand capacity during periods of growth
- Provide support across different time zones
- Fill specialist roles more quickly
What types of work can be offshored?
Many business functions can be successfully offshored, particularly roles that can be performed remotely. The right approach depends on the business, the role, and the level of collaboration required.
Common examples include:
- Customer support and helpdesk services
- Software development and IT support
- Finance, bookkeeping, and payroll
- Marketing and content creation
- Data entry and administration
- HR and recruitment support
- Design and creative services
What are the challenges of offshoring?
Offshoring can bring many benefits, but it also requires planning and good management. Like any hiring strategy, there can be a learning curve when working with teams in different locations.
Common considerations include:
- Managing communication across different time zones
- Understanding local employment and compliance requirements
- Maintaining consistent processes and quality standards
- Providing effective onboarding and training
Example of offshoring
A digital marketing agency in Birmingham has grown quickly and needs extra support with reporting, data entry, and campaign administration. Hiring two additional employees in the UK would cost around £70,000-£80,000 a year once salaries, National Insurance, pensions, and recruitment costs are included.
Instead, the agency hires two offshore employees in India with equivalent experience and skills. The total annual employment cost is around £30,000-£35,000, including salaries and local employment expenses.
After training, the offshore team takes ownership of routine work, allowing the UK-based account managers to focus on client relationships and growth. As a result, the agency reduces hiring costs by around 60%, improves productivity, and takes on more clients without significantly increasing overheads.
Offshoring vs outsourcing
With offshoring, you hire employees in another country and manage them as part of your own team. With outsourcing, you hand the work over to another company and let them take care of it.
| Feature |
Offshoring |
Outsourcing |
| Hiring model |
You hire the people |
You hire a company |
| Workforce relationship |
Employees work as part of your business |
The provider delivers the service |
| Management |
You manage the team directly |
The provider manages the work |
| Control |
More control over processes and culture |
Less day-to-day involvement |
| Typical use |
Often used for long-term growth |
Often used for specific projects or tasks |
A handy way to think about it: if you're building an overseas team, that's offshoring. If you're paying someone else to do the job, that's outsourcing.
Is offshoring right for every business?
Offshoring can work well for businesses looking to reduce costs, access specialist skills, or increase capacity. However, it is not a one-size-fits-all solution. Some roles may need a local presence, while others can be performed remotely with ease.
The key is identifying which tasks can be successfully managed by an offshore team without affecting quality, customer experience, or business performance.
How can Black Piano help?
Black Piano is an EOR and remote talent partner that helps UK businesses hire top talent in India without the usual complexity. From recruitment and onboarding to payroll, HR, compliance, and ongoing support, everything is taken care of. You get access to skilled professionals while Black Piano handles the admin. Learn more about our services.
