OUTSOURCING - PART 2 OF 3: Hiring local vs. offshore

PART 2: SHOULD I HIRE A LOCAL OR OFFSHORE VA?

Four years ago, I wrote a blog on this same topic. As part of my new three-part blog series on outsourcing, I have updated what I wrote before, though I have not changed my overall opinion on how to answer. Read why.

The question on whether to hire a local virtual assistant (VA) or someone offshore is often primarily focused on pricing. While especially small business owners want to and need to watch their overhead cost and lean towards hiring a cheap offshore assistant, there are equally strong points for hiring someone local to you and at a higher value.

The graphic below (not my drawing and original source unknown) demonstrates this argument over cost versus quality…

I must add that I am sure there are very good VAs to be found offshore and some good and low-cost local providers too. Overall though, we all know that low-cost often translates into “you get what you pay for”.

“If you pay peanuts, you get monkeys.”

 

Here is my take on the benefits, as I see them:

1.       Knows Your Local Practises & Culture. Every country has its own unwritten ‘rules of engagement’ in terms of social and business norms. For example, business letter or nowadays email etiquette in how to address the recipient. Just because using someone’s first name is acceptable in North America, what is the norm in other countries? Getting this right can make or break a good first impression and a business relationship.

For example, I was raised in Germany, where you ALWAYS address others in a business setting by their surname, especially when they hold a higher rank or profession or are your senior in age. This is most common in Germany and Japan. Other countries have a very relaxed approach and may find overly formal communication arrogant and cold.

 

2.       Knows Your Local Conditions: Living in North America or specifically, Canada, means that we have five months of winter and a lot of snow every year. Enter snow days! Knowing local weather conditions means your VA knows when to expect your and your clients’ or patients’ meetings and appointments to be delayed or cancelled and requiring rescheduling. Or if there are any other major disruptions from local strikes or other incidents that hold up regular life and business it is helpful to be on the same page.

 

3.       Time Zones. This one can swing either way in terms of greater benefits, depending on what you value more. Being in the same time zone helps with synchronising communication but equally has benefits when your clock and work hours differ. Sending work requests to someone who is 6 to 10 hours ahead of your local time means they start working again the next day before you do, and tasks or emails can be waiting in your inbox when you start your following workday. On the flip side, if your VA needs to phone your local clients or vendors, it helps to be in the same time zone.

 

4.       Building Connections.  Your local VA is a business owner too and therefore has personal connections in the business world, as well as their personal life. Sometimes that means being able to secure a better deal for you with a vendor or simply knowing the best supplier or food place near you. Many business owners also prefer doing business with other local providers and want to support the “shop local” trend, so having local contacts is a big plus. On the other hand, the Internet has made many businesses global and anyone can look them up online for any country and contact them by email or online chat bot.

 

5.       Reputation. Although VAs can and do work with clients from around the globe, many clients prefer a provider in the same country. And because VAs – like many businesses – rely greatly on referrals to get new clients, their reputation in the local business community is at stake if they don’t provide a good service. For you as a client of a VA, it also means you can better check and trust local references. An overseas VA or VA agency wouldn’t need to be as invested in your local community and their reputation in your country, versus their home location.

6.       Pricing. With the majority of VA’s quoting and billing by the hour or a fixed monthly retainer, you will find a wide range of quotes that can run anywhere from $10 to $70 an hour. Virtual assistants who are offshore, new to the industry or doing this as a part-time student or other side gig are likely to be dirt cheap. For simple tasks, they may be a good fit for you and you can find them on freelance job sites like Fiverr, Upwork and others. My personal view on “cheap” anything is like comparing the purchase of a $5 or $10 T-shirt made cheaply in a sweatshop in the Philippines, Malaysia or China versus buying a quality, well-made and average priced shirt made somewhere else. You might get a year or two of wear out of a cheap T but are far more likely to get longer wear out of the classier version and will probably look and feel better. Which would you prefer?

If you are a more discerning person and business owner, you may prefer a provider who is well above a minimal wage and has a background and reputable testimonials that resonate with you. More established VAs and virtual/online business managers, who provide support that goes well beyond administrative tasks, more typically offer value-based and customised monthly or project specific packages.

 

Above benefits are based on my opinion and experience with my own clients, as well as what I hear from prospective clients. My own recommendations lean towards There are many other factors to consider when you are looking for the right VA for your business needs, so think about what works best for you and go with that!