In my previous blog I spoke about the difference between Offshoring versus Outsourcing.
I explained that Offshoring is equivalent to hiring overseas team members with you selecting from a bigger pool of suitably qualified candidates. This is with much reduced employment risks as you are not directly the employer.
In this blog I’d like to expand on what it costs, who is the employer and what happens if the staff member doesn’t prove to be the right fit for your firm.
Offshoring – what does it cost?
The monthly cost starts at £900 plus vat and is dependent on the required calibre of staff. That fee includes full administration of the staff rendered; processing of payroll and statutory obligations; staff supervision and support; HR support and IT support.
There is also a one-time set up fee of £800 plus vat. This is for the configuration of the workstation; installation of hardware and software as required. Plus, onboarding and drafting of employee contracts and performing background checks.
Offshoring – who is the employer
Although the staff member will work exclusively for you, and you will directly manage the personnel’s day to day work and provide them with instructions thereon, the legal employment is with the Offshore company.
Offshoring – How does it work?
The initial discussion will set the parameters for the staffing requirements and the overall business proposal. That includes a clear summary of work scope and candidate expectations. The monthly fee is agreed at that point.
The Offshoring company finds suitable candidates and carries out initial screening for suitability before providing you with candidate CVs. A virtual interview is then carried out at your convenience with a view to selection, by you, of an appropriate candidate.
Once a candidate is selected they will be formally hired by the Offshore company. Once their workstation is set-up within the secure offices of the Offshore company. Only then will monthly billing commence.
The staff member is fully dedicated to you, working under your direct supervision, as per normal UK working days and hours. They will work within a secure environment with biometric systems to secure authentication. They will have signed a confidentiality agreement; they work using encrypted VPN connections for secure access; USB ports are disabled to prevent unauthorised transfer of data or malware. And they have restricted access to essential only websites to reduce exposure to threats.
Offshoring – staff continuous development
In-house training and career development is conducted by the Offshore company. The staff performance is reviewed with you on a monthly or quarterly basis.
Offshoring – What if it doesn’t work out?
You are not the legal employer. Plus, there is no long term commitment. If you are not satisfied you can change the candidate. If you are not satisfied with the offshore operations, then you can terminate the agreement by providing 30 days written notice.
Next steps
We do understand how challenging it is for UK firms to find and retain good quality accounting staff. We will therefore be launching a partnership with an Offshoring provider next week. Watch this space!
