Is Outsourcing Jobs Abroad a Smart Business Move?

Take the first step towards smarter outsourcing decisions! This article provides valuable information and best practices for making informed decisions about outsourcing.
REMOTO WORKFORCE Team I Updated on - May 5, 2023

Are you considering outsourcing jobs to neighboring countries to cut costs and increase your business efficiency? 

As the world becomes increasingly interconnected and globalized, offshore and nearshore outsourcing approaches have become widely used for companies of all sizes. However, outsourcing can be more intricate than it seems, so it’s essential to be informed before making any decisions. 

In this guide, we’ll delve into the latest outsourcing trends and statistics for 2023 and provide some practical tips for successful outsourcing. We’ll also be comparing this trend to other familiar types of outsourcing, like offshore outsourcing.


Outsourcing Trends and Statistics in 2023

In 2023, outsourcing will continue growing in popularity among businesses of all sizes and industries

As a result, outsourcing has prevailed in various industries, like customer support, IT services; administrative accountability and financial services; healthcare services; manufacturing and logistics; marketing and sales; and HR and recruiting

Here are some emerging trends, statistics, and industry-specific insights to remember.

IT Outsourcing

Regarding IT outsourcing, companies may outsource certain aspects of their technology infrastructure, such as software development, cloud management, and data storage. 

This allows IT companies to focus on their core competencies while still having access to new technologies and specialized skills. Additionally, offshore or nearshore IT outsourcing can help them optimize cost savings by hiring full-time experts. 

During the projected period of 2021 to 2026, the global market for IT outsourcing is estimated to experience a compound annual growth rate (CAGR) of 4.5$, increasing from a value of USD 318.5 billion in 2020 to USD 425.19 billion by the end of 2026. A

Administrative, Accounting, and Financial Services

Administrative, accounting, and financial services outsourcing is increasingly demanded in 2023. Outsourcing services in these industries can help businesses reduce costs and permanently increase cost-effectiveness in hiring. 

According to Indeed, administrative, accounting, and financial service salaries can reach a median salary of $76,570. The highest-paying jobs in these industries are financial advisers, with an average salary of $77,003 per year. Senior accountants are usually at the top of the candidates and can ask for an average salary of $78,341 per year. 

Information technology auditors, financial software developers, and chief financial officers can ask for yearly salaries ranging from $98,000 and $148,750. As a result, you can drastically reduce costs when outsourcing tasks associated with these positions. 

To give you an example, when you outsource an information technology auditor in a neighboring country, you can hire them for an average yearly salary of $90,000 and $96,000. 

Healthcare Services    

Healthcare organizations can offload tedious management and administrative tasks, like booking medical appointments and freeing internal staff to focus on what they do best. This allows them to grow service lines and flexibly minimize patient care delivery costs. 

Remote outsourcing of healthcare services can include a variety of job positions, such as: 

Manufacturing and Logistics

By introducing remote nearshore outsourcing, companies can access the economies of scale that come with more extensive operations and specialized expertise and resources that they may not have access to with offshore outsourcing. 

This is especially true for small and medium-sized businesses that often lack the resources or expert personnel for specific tasks. In addition, according to a research paper published by the Journal of Global Operations and Strategic Sourcing, companies are likely to outsource their logistic services due to cost savings. 

Marketing and Sales

Outsourcing marketing and sales has been gaining popularity in the business world in recent years, and it continues to gain momentum in 2023. There are many reasons why outsourcing is becoming increasingly popular in this field. 

Here are some of them: 

  • Outsourcing allows marketing agencies and sales teams to focus on their core competencies by hiring services related to SEO, content strategy and writing, and social media management. 
  • With outsourcing, access to a broader pool of expertise in SEO, content marketing, and sales coaching is possible. 
  • With the help of these outsourced experts, marketing and sales teams can take advantage of industries’ latest trends, like new technologies for data analytics focused on customer preferences. 

The popularity of outsourcing is well documented by Grand View Research. Its report states that global marketing size is expected to reach USD 115.4 billion by 2025. It also affirms that the increasing demand for digital marketing and the need for cost-effective marketing solutions are the primary drivers of marketing growth. 

HR and Recruiting

By outsourcing HR and recruiting services, businesses can free up resources, focus on their goals, and access a larger talent pool. In addition, when getting the best talent, staffing agencies can help you find the right employees

Staffing agencies can also use business process outsourcing (BPO) to access specific services for limited budgets, such as payroll, customer service, and accounting. This explains why BPO is a choice for companies in 2023. 

In 2022, companies spent more than $700 billion on outsourcing. Looking into the specifics, BPO is expected to increase by 19% from 2019, projecting a total of $212 billion in 2023.


Maximizing Efficiency: 8 Outsourcing Best Practices

In today’s business landscape, outsourcing has become a vital practice. However, to make the most out of this strategy while minimizing risks, it’s crucial to follow best practices

Here, we’ll outline these best practices to help businesses succeed in outsourcing.

  • Identifying goals and expectations: Decide what tasks you want to outsource and what you hope to achieve. 
  • Vendor selection: When selecting an outsourcing vendor or staffing agency, it’s crucial to consider the experience in similar projects and their reputation in the industry. Moreover, assessing their ability to meet your needs and budget constraints is essential. 
  • Proactive communication: Maintain open communication with your outsourcing service provider throughout the project. With remote nearshore outsourcing, businesses can benefit from vendors who can provide real-time updates and collaborate on projects more agilely. 
  • Clear contractual agreements: For a remote nearshore outsourcing agreement to be successful long-term, you and all the parts involved must be clear. Typically, these agreements include timelines, payment terms, dispute resolution procedures, confidentiality clauses, intellectual property rights, liability causes, and legal and ethical issues. 
  • Conflict resolution: Suggest resolution procedures before disputes escalate into more significant issues, leading to a damaged reputation. Unlike offshore outsourcing, you can take the most of cultural proximity to solve the problems with your staffing agency if it’s located in a neighboring country.  
  • Performance monitoring: Contact your outsourcing service provider to have a monitoring performance procedure. With remote nearshore outsourcing, you can get real-time performance updates due to shared geographical distance and cultural proximity. 
  • Data security: When considering an outsourcing agreement involving sensitive data or processes subject to specific regulatory requirements, extra caution must be taken when selecting a vendor. 
  • Risk management: This should always be considered when entering into an outsourcing agreement, regardless of the type of work being done. Have a consistent plan in case something goes wrong during its execution, and make sure all parties involved understand how to manage the potential risks associated with the agreement.

Remote Nearshore Outsourcing: A New Trend 

With technological advancements and the popularity of remote work, new outsourcing trends have emerged. One such trend is remote nearshore outsourcing, which offers many advantages over traditional outsourcing models.

Remote nearshore outsourcing combines the cost advantages of offshore outsourcing with the cultural alignment and proximity benefits of onshore outsourcing. 

Compared to traditional offshore outsourcing, remote nearshore outsourcing differs in these benefits: 

  • Greater cultural compatibility makes communication smoother and more effective. 
  • More relaxed time zones differences, enhancing collaboration and responsiveness 
  • Reduced risks associated with offshore outsourcing, including language barriers, larger time zone differences, delayed tasks, quality concerns, and difficulty traveling to foreign locations. 
  • Increased diverse, inclusive talent pool that shares values, corporate culture, similar cultural practices, or the same language. 

For example, Mexico is a cost-effective option for outsourcing IT services in neighboring territories with a 58% lower total cost of labor when compared to the US and other countries in Asia, according to Forbes. Mexico also offers top-quality talent at affordable rates, with team members willing to innovate, collaborate, and embrace the latest technologies. 

Offshore outsourcing destinations such as India and the Philippines have been known for their low labor costs but also present communication difficulties, cultural incompatibility, and strict time zone differences.

Therefore, compared to traditional offshore outsourcing, IT remote nearshore outsourcing, particularly with Mexico, offers similar cultural norms, better communication, diverse and inclusive talent, and cost savings. Moreover, remote nearshore locations such as Mexico provide US-based companies with the added advantage of similar time zones.

As a result, Mexico is today a premier destination for outsourcing. This leads to better communication and project management, which may not be achievable in traditional offshore outsourcing destinations like Pakistan or Vietnam. Nevertheless, delayed tasks and conflicts between different corporate cultures emerge when outsourcing employees from these places.

If you’re looking for a quick and easy understanding of outsourcing in no time, this video is for you! In just two minutes, you’ll have an in-depth comprehension of what outsourcing is all about. So don’t wait; watch now and find out! 




Outsourcing jobs abroad can be a smart business move for specific companies if done thoughtfully and strategically. 

Employers should consider all their options carefully and develop a plan for remote nearshore outsourcing that matches their specific needs. This plan must be based on an expert analysis considering the compatibility between business models and geopolitical factors. 

Unlike offshore outsourcing, remote nearshore outsourcing provides access to many advantages. Staying up-to-date on the most common trends and statistics will enable you to make informed decisions about outsourcing jobs abroad. 

Regardless of how you proceed, remember that successful remote nearshore outsourcing requires strategic planning and focus on best practices to reap maximum benefits.

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