Amidst the dynamic HR landscape, the global workforce has experienced a significant transformation, and remote work is gaining immense popularity across the globe.
Companies have adapted remote work policies post-COVID-19 pandemic to ensure business continuity. Consequently, this shift has entirely transformed the global hiring landscape and has opened up new possibilities and challenges for organizations that are seeking the right talent.
This blog will provide insights into how the global hiring landscape is rapidly transforming in the modern era of the remote workforce and how offshore teams/extended teams are more beneficial than the gig workforce economy.
The Emergence of Remote Workforce Post-Pandemic
The pandemic has brought significant transformation in the global hiring landscape. It has disrupted the traditional work arrangements worldwide, leading to a surge in remote work. Many organizations recognized the feasibility and advantages and chose to embrace permanent remote work operations.
The shift towards remote work had a profound impact on the offshore model. Ashwin Yardi, CEO of Capgemini Technology Services stated “Covid-19 has boosted the offshore model and India’s IT services are expanding faster in tier 2 and tier 3 locations.”
Furthermore, according to Outlook India, 70% of companies outsourced their software development projects to save costs. Of those companies, 31% did so to improve service quality, and 28% aimed to access talented professionals. The trend in outsourcing has been significantly influenced by technological advancements.
One of the primary reasons why remote work is advancing in technology is smooth communication and collaboration. Teams can collaborate and work effectively with tools like video conferencing, project management software, and cloud-based storage regardless of their physical location. This has opened up opportunities for organizations to tap into talent pools globally without the constraints of geographical boundaries.
How Offshore Teams in the Modern Era Are Gaining the Edge Over the Gig Workforce Economy?
As the remote working era takes center stage post-pandemic, there are several pitfalls when it comes to hiring gig workers such as the limited skill set, inconsistent availability, communication amidst constantly changing barriers in remote work environments, and difficulty in maintaining quality control. This is where offshore teams come into play, which offers several advantages over the gig workforce economy.
- Gain Access to Specialized Talent: Organizations seek specialized talent with precise skills required for industry projects. They will benefit from offshore teams as compared to gig workers. The reason is that gig workers may only possess the expertise required for complex or industry-specific tasks, which can result in discrepancies in overall project quality and efficiency.
- Cost-Efficiency: Organizations that leverage offshore teams yield substantial cost savings compared to the expenses associated with a gig workforce. This results in economies of scale shared resources, and reduced overhead costs. Companies can significantly save labor costs while accessing a highly skilled workforce. Whereas, the gig workforce may hire freelancers individually, leading to higher per-project costs and increased administrative overhead.
- Cultural Fit and Alignment: Building a global offshore team fosters a sense of belonging and cultural alignment where team members can work together effectively, regardless of geographical location. On the other hand, the gig workforce economy comprises individual freelancers who may have varying levels of commitment to your organization’s culture and goals. Such diversions in values and priorities can hinder effective collaboration and alignment.
- Enduring Partnerships: One of the significant reasons to hire an offshore team is that it encourages long-lasting relationships, stability, and talent retention, fostering ongoing improvements and innovation within your organization. In contrast, the gig workforce economy often involves short-term engagements. This could be challenging to build long-term partnerships.
- Stability and Reliability: Every organization requires a stable and reliable workforce. Extended offshore teams play a crucial role in providing consistent support that is essential to adhere to project timelines and maintain communication. On the other hand, gig workers may only sometimes be available when needed, leading to project delays and inconsistencies in deliverables.
- Data Security: Offshore teams often have well-established data security protocols and infrastructure. The team has the requisite experience handling sensitive data while ensuring strict compliance with data protection regulations. It enables your organization’s valuable data to be secured throughout the project lifecycle. On the other hand, working with gig workers may have different levels data protection measures in place, potentially leading to vulnerabilities and compliance issues. Hence, choosing an offshore team can eliminate these data security concerns and ensure the protection of sensitive information compared to the gig workforce economy.
- Seamless Collaboration: Offshore teams promote effective communication and collaboration due to their cohesive integration. In contrast, gig workers work in isolation, resulting in communication gaps and a lack of synergy among team members. Effective collaboration can be challenging, where extended teams work closely together and share ideas and expertise seamlessly.
- Quality Assurance: Organizations can implement robust quality control measures to ensure consistent high-quality outputs. This includes rigorous testing, reviews, and adherence to industry standards. On the other hand, quality assurance can be more challenging with a constantly changing gig workforce. They may have different quality standards and work approaches, making maintaining consistent quality across projects difficult.
- Scalability: Offshore teams can be quickly scaled up or down, providing flexibility on based project requirements. This allows organizations to respond to changing requirements effectively. Whether it involves expanding your team to handle a large project or downsizing during periods of lower demand, offshore teams can accommodate these fluctuations efficiently. On the other hand, gig workers may sometimes offer different levels of scalability and availability. Finding and onboarding individual freelancers temporarily can be time-consuming and less efficient when compared to the scalability offered by offshore teams.
Building Trust With an Offshore Development Team is a Strategic Necessity
According to Forbes, building trust across geographical boundaries is pivotal for achieving project success, whether you are a CEO, HR manager, or project manager of the company. There are several ways in which companies can build trust with their offshore partners. Some of them include:
- Establish Mutual Value
To cultivate mutual trust that unites both in-house and offshore teams, gaining a deep understanding of the organization’s values is essential. These values should be clearly stated to both offshore and in-house development teams. Here are some crucial ways to achieve mutual trust:
- Conducting workshops that transcend the boundaries of regional offices and connect offshore team members.
- Legally vetted agreements should be in place, ensuring that both sides are committed to agreed-upon values.
- Face-to-face meetings with both management and leadership teams to strengthen these values.
- Cultivate a Mutual Sense of Spirit
Aligning teams with common business goals and future milestones builds a profound sense of belonging and inclusiveness. Identifying and proactively addressing potential issues or concerns contributes to timely project completion. To cultivate a sense of spirit among team members, organizations should:
- Implement a reward system, ensuring collective spirit among team members.
- Encourage a culture of mutual support and assistance with the team, creating a strong sense of unity.
- Build an inclusive work environment and ensure all the team members feel valued regardless of their role in seniority.
In light of the challenges of the gig workforce, organizations aiming to secure top-notch talent and a reliable workforce find offshore teams to be an invaluable resource for achieving business success. As we advance into the realm of remote work, adapting to these transformations is essential to propel your organization to new heights.