Blog

Global outsourcing: could it help your business?

Read

Domestic vs Global Outsourcing
5
(1)

Today, businesses have many options when it comes to global outsourcing for some services or even entire departments. There is also the option to outsource domestically. There are pros and cons to each model. If you’re trying to make the decision as to which is right for your business, explore this guide on domestic vs global outsourcing.

The right answer for you will depend on the type of business you run and the field in which you operate. For example, start-up companies can really benefit from the cost saving aspects of global outsourcing, whereas it may not suit a locally-focused enterprise.

Nearshoring, too, can operate as a sort of halfway house for some businesses, allowing a global outlook and reach while mitigating some of the drawbacks to working across borders. This is especially useful for companies who are worried about external factors such as geopolitical events affecting their operations.

Serviap Global can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO.

What is global outsourcing? 

Global outsourcing involves hiring a company based in another country to handle some of your business operations. Some of the most popular services include manufacturing, IT, customer support, and HR.

With the rise in remote working in recent years, it has become easier and easier to collaborate across borders and work with an international team, either with individual workers or for entire departments where necessary, such as global payroll outsourcing.

Some companies like to work with specific countries, whereas others prefer to cast a wide net and have a truly diverse workforce. The former option means more homogeneity in the workforce, but also limits options. The latter means more potential culture clashes, but allows for a much greater reach worldwide.

The benefits of global outsourcing

Some of the top benefits of global outsourcing include: 

  • Reduced costs. One of the biggest advantages of global outsourcing is cost savings. Highly-trained workers in your home country may command high wages due to a high cost of living. However, in other countries, similarly highly-skilled individuals might well be relatively inexpensive to hire.
  • Tax incentives. Many countries want to attract foreign direct investment. As such, they offer many incentives for businesses to outsource work to their country, including tax incentives and other benefits.
  • New perspectives. When you outsource globally, you can tap into a unique set of skills and talent that may not be found in your home country. If you’re looking for different ideas or a new approach to doing business, then global outsourcing could be right for you.
  • Expand quickly. With access to large highly-skilled talent pools at very affordable rates, your company can ramp up production quickly, hiring a large team for your global outsourcing needs.

Some drawbacks

Global outsourcing does create some issues, though, and you need to be aware of some things that you will have to manage. 

  • Time zone differences. Depending on where you outsource, you could be very far away from the company you’re working with. This could make communication challenging, especially if the normal business hours could be significantly different.
  • Language & cultural barriers. There may be a potential language barrier that could affect communication. Even in countries that have a high level of English proficiency, there may be some hiccups in communication because of the different nuances of culture. 
  • Physical distance. The physical distance could also be a challenge if you need to be more hands-on with your outsourcing company. Shipping goods or traveling to the country will be more difficult and costly than traveling domestically. 
  • Rules & Regulations. Finally, there are foreign rules and regulations you’ll have to abide by when you outsource globally. The good news is that you can hire a Professional Employer Organization (PEO) such as Serviap Global to handle all of this compliance for you.  

Other options

Domestic outsourcing involves hiring a company based in your country to handle some of your business operations. You’ll be sending the work out-of-house but keeping it in your country.

Outsourcing domestically means you won’t have to adjust to different cultures and potential language barriers. When you outsource domestically, you’ll be dealing with a company that is based in the same place as you and that makes communication easier. 

It will also be easier to do business with a company located in the same country because time zones will likely be the same of very close to your main office location. When your local and outsourced team operate in similar time zones, collaboration can be improved.

Depending on what you’re outsourcing, shipping may be a consideration. Goods that are shipped within the country don’t have to face as many regulations, and products can typically be sent and received much faster. The cost of shipping domestically is also much cheaper. Nearshoring can be a way to retain some of these factors when outsourcing globally.

While you certainly can save money by outsourcing certain services domestically, you won’t get as much cost-savings as you could if you outsourced globally. By working in one country, you’re also putting all your eggs in one basket, so to speak. Challenges that you face because of the local economy would be similar for the outsourcing company too. 

If you need creative or outside-the-box thinking, domestic outsourcing might not be right for you. Many U.S. companies think alike, because they are trained in similar ways by similar people. In other words, you may not be getting as much creativity as you’d like, depending on what it is that you’re outsourcing. 

Serviap Global can help with global outsourcing 

SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the world. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization.

Having started out in Mexico, we have grown during more than a decade of operations to establish a global presence, in the process earning a reputation as experts on hiring in emerging markets.

Contact us to learn more about how we can assist you with global outsourcing to expand internationally.

https://www.youtube.com/watch?v=pxLlwjtJuMY
Serviap Global es experto en contratación internacional

How useful was this post?

Click on a star to rate it!

Average rating 5 / 5. Vote count: 1

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Related Articles

Global outsourcing: could it help your business?

What is Neurodiversity in The Workplace And How to Support it

Talent Acquisition

5 Read

Fostering a truly inclusive workplace means going beyond compliance and actively celebrating neurodiversity in the workplace.

Read Blog Post

PEO vs EOR Services: 2 Options to Choose

Global EOR, International PEO

5 Read

Understanding the key differences between PEO vs EOR services is crucial when choosing the right solution for your business.

Read Blog Post

New Minimum Wage in El Salvador: What it Means For Global Companies

News El Salvador

4 Read

The new minimum wage in El Salvador became effective on June 1st, 2025, and requires a varying increase across different sectors.

Read Blog Post

Serviap Global Celebrates 15 Years

Featured, News

5 (2) In 2025, Serviap Global celebrates 15 years of history, an achievement that mirrors the rapid transformation of the employer of record (EOR) industry...

Read Blog Post

How to Pay Contractors Internationally: a Quick Guide

Independent contractors, Talent Acquisition

0 (0) Hiring international contractors can help you grow your business, reduce costs, and access specialized skills, but navigating how to pay contractors across borders...

Read Blog Post

How Can a US Company Hire a Foreign Employee?: 3 Useful Options

Recruitment, Recruitment process outsourcing (RPO)

0 (0) Even with recent tariffs and economic uncertainties, many American businesses are looking beyond borders to tap into international talent. But how can a...

Read Blog Post

Working Hours in Mexico: Country Plans 8-Hours Reduction by 2030

News Mexico

0 (0) Recent years in Mexico have been marked by recurrent discussions in labor reform, including the increase of minimum wage and the fight against...

Read Blog Post

4 Global Expansion Tips With Aaron McDaniel

Global EOR, Remote working

Expanding globally in 2025? The goal is not just about targeting the biggest markets. Read and discover global expansion tips to grow with confidence.

Read Blog Post

Serviap Global Wins at the 2025 Excellence in Customer Service Awards

Awards

The Serviap Global team has been recognized in the Exceptional Customer Experience category.

Read Blog Post

Live Webinar: What You Must Know About Global Expansion in 2025, with Aaron McDaniel

Featured

Learn insightful tips for global expansion expansion in our live webinar, featuring Aaron McDaniel.

Read Blog Post

Serviap Global is a Finalist at the 2025 TIARA Talent Solutions Awards US

Awards

Serviap Global becomes a finalist in Client Service at the 2025 TIARA Talent Solutions Awards US.

Read Blog Post

How to Use AI in Hiring International Workers

Recruitment, Recruitment process outsourcing (RPO), Talent Acquisition

How to use AI in hiring? Discover the history, benefits, and challenges of AI assistance in global talent acquisition.

Read Blog Post

How U.S. Tariffs Benefit Canada and Mexico: A Strategic Advantage in Global Trade

News

5 (1) US tariffs on other countries strengthen the position of Mexico and Canada as key partners for companies looking to expand, hire talent, and...

Read Blog Post

Borderless Talks Ep. 6: Women in Remote Work And The Evolution of The EOR Industry

Featured, Global EOR, Remote working

Episode 6 of Borderless Talks invites Brend Limón to discuss the evolution of global collaboration from the perspective of women in remote work.

Read Blog Post

Serviap Global is a Finalist at the 2025 Latin America Inspiring Workplaces Awards

Awards, Featured

Serviap Global is nomitated as a finalist among 8 other global companies at the IW Awards 2025.

Read Blog Post

How to Manage International Teams: 5 Tips for Leaders

Global EOR, Remote working

Efficient international teams take hard work and ongoing efforts in communication and culture. Here are 5 considerations to improve remote teamwork.

Read Blog Post

2 Options for Hiring Remote Foreign Employees Without a Local Entity

Global EOR, Independent contractors

The complexities of hiring remote foreign employees can be simplified with these two options: EOR collaboration and hiring independent contractors.

Read Blog Post

Infographics: Can we Overcome The Global Talent Shortage in 2025?

Recruitment, Talent Acquisition

Discover some key tips to help you beat the global talent shortage and getting ahead.

Read Blog Post

Borderless Talks Ep. 5: Advantages of Chinese companies in Latin America

Featured

Listen to the fifth episode of Borderless Talks with Serviap Global's Sales Executive from China, Sally Chen.

Read Blog Post

6 Important Documents to Hire Employees Abroad

Recruitment, Talent Acquisition, Visas and Immigration

Get to know some of the important documents and steps to hire employees abroad for global companies.

Read Blog Post

Global Hiring Trends in 2025: Which Industries Are Leading International Expansion?

Global EOR, International PEO

In 2025, many sectors will be at the forefront of international expansion and global hiring trends, from technology, to manufacturing, and so on.

Read Blog Post

Infographic: Working Hours in Latin America by Country

Infographics, International PEO

The maximum working hours in Latin America vary from country to country. Getting an overview of their work practices is essential to enter this region's...

Read Blog Post

Hiring In Colombia: 10 Key Factors To Know Beforehand

News Colombia, Talent Acquisition

Discover important aspects of the Colombian market based on the World Bank's Business Ready 2024 ranking.

Read Blog Post

How Does EOR Work?: Your 6-Steps Easy Guide

Global EOR, International PEO

An Employer of Record helps you enter new markets in a matter of weeks or even days. But do you know how does EOR work?

Read Blog Post

New “Unidad de Medida y Actualización” in Mexico: What it Means for Employers in 2025

Global EOR, News Mexico, Payroll outsourcing

The "Unidad de Medida y Actualización" index was increased by 4.21% in 2025 and reflects in the payment increase of fines and other obligations.

Read Blog Post

Borderless Talks Ep. 4: Top Global Expansion Mistakes to Avoid in 2025

Featured, Global EOR, Podcast

Listen to the fourth episode of Borderless Talks with Global Expansion Expert, Klaus Wehage.

Read Blog Post

Infographics: International Maternity Leave Standards

Global EOR

Browse our maps to discover the main differences in guidelines for international maternity leave rights.

Read Blog Post

Borderless Talks Ep. 3: Zain Ali on Global Hiring Solutions

Featured, Podcast

Listen to the third episode of Borderless Talks with Zain Ali, CEO of Centuro Global.

Read Blog Post

5 Top Digital Nomad Destinations in South America 

Uncategorized

Looking for your next place to work, live or hire? Here is our selection of top digital nomad destinations in South America for 2025.

Read Blog Post

6 Global Team Building Tips from Santa Claus Himself 

International PEO, Recruitment process outsourcing (RPO)

Santa Claus partnered with Serviap Global to give you these important tips on global team building in your company.

Read Blog Post