It is better to outsource your work at local level teams instead of global
When starting a new business, the first and most important thing you might have to consider is your team, i.e. will it be of consisting of local employees or global employees. It becomes a necessary decision to take when your business requires any kind of service because both will bring you to different challenges. Also, it can impact business productivity in different ways.
Here are a few factors which show how local and global teams affect businesses differently:
This is the most obvious difference in having a local or global team. If you are dealing with your customers with global teams then it will be very hectic for you to be available at their working hours which might not be the same as yours. It will be even more difficult if you are delivering the services of more than two countries in different time zones. You might have to expand your managing staff and if you are cost-focused business then it is not possible for you to hire more staff.
While if you are working with local teams then you won’t have such issues because they will be available at the same working hours as you want. Also, you won’t need any separate staff to manage them as you might have to do with your global team. Like if a client wants to get their hardware fixed then you can easily schedule the appointment in the working hours and also can resolve any kind of issue, if faced by the engineer working on the site.
Language and cultural difference –
If you are working on a global level with global employees then you will face cultural and language differences. You will not only have difficulty in understanding their language but at times you might also fail to give importance to any of their festivals or anything related to their customs and culture. This will make a negative impact and will create differences in relationship and communication between you and your employees.
While there is no such issue with your local employees as they will be speaking the language as yours as well as they will be aware of the same cultural values as yours. Language won’t be a barrier between you and your engineers. They will be easily able to report you about the work, issues, and progress of the site they are assigned to.
Lower cost –
Hiring and managing a global team is, undoubtedly, a part of a bigger investment. You will need a lot of overseas employment permissions, a separate managing team to be set at their location so that they can regularly report and get help wherever and whenever needed to serve the clients. Thus, clearly, it can be imagined that managing a local team is very economical than managing a global team. You will save a huge amount of capital by opting out a global team.
This becomes more obvious when you are running field services business because you might have to export some important hardware, devices, equipment and their separate parts which are needed in fixing and providing services when handling foreign clients with your global team. So, local teams demand way less amount of investment to get enough productivity.
Direct Contact –
You have to have direct contact with your employees in order to understand the issues which they may face while working and also to look after your services that they provide to your precious clients. It is absolutely not possible while working with a global team because you can’t travel every day or week to check their problems and services while if you only work with a local team you can meet them on a regular basis if you want to.
If you are a businessman or an entrepreneur then you can understand the importance of having direct contact and communication with the employees. Thus, it is clear that when it comes to having direct contact with your employees then the best you can have is from your local team.
Trustworthy Recommendations –
Hiring employees while you are sitting across the sea might not be a trustworthy option as you may get in your local team. When you have to hire employees to work on the field for your business then you have to take care of a lot of factors, qualifications and their skills. So, if you are hiring global employees you need to hire consultancy to get the best employees, which adds to expense. But still, you won’t be sure that if you have the right employees because all the proceedings are done digitally.
This becomes an advantage for you if you are working with local employees. You can get trustworthy recommendations from your family, friends, and acquaintances. You can also test them and interview them in front of you and also will be able to test their skills for the required job profile.
Complex Forex market –
This factor is the biggest disadvantage if you are dealing with the global team because the complex forex market makes normal payments and transfer very tricky and difficult. As the rate of currencies keep changing so there are no possibilities that if the amount you are sending to your employees will be the same or it will change due to a sudden change in the market. Also, you might have to bear additional taxes for foreign transfers and payment. But there are no such issues for your local team because you can directly credit salaries to their account and it will be comparatively very easier to maintain the books.
It can be voiced hiring a global team isn’t always the best idea. However, if you are working with a local teams then managing business is comparatively easy and there are greater chances of higher productivity and greater returns.