Portfolio Companies (PortCos) are forming strategic alliances to strengthen business strategy and core operations, reflecting a recent trend in private equity (PE). This relationship ensures a return on investment for PE firms while helping PortCos achieve optimal post-acquisition bottom-line results. PortCos can increase earnings by outsourcing their finance, human resources, legal, customer support, service delivery, general and administrative, and information technology services.

Working with an offshore outsourcing vendor allows you to benefit from their expertise while also saving money. There are numerous advantages to this strategy that are worth briefly discussing.

1. Access a Diverse Talent Pool and Expertise: Outsourcing to suppliers with a large pool of skilled labor is advantageous for portfolio companies looking to expand swiftly. When specialist skill sets are required or the PortCo lacks expertise in a certain area, offshore is especially advantageous.

2. Guaranteed Cost Efficiency: Offshoring allows Portfolio Companies to save up to 70% of their costs, depending on the region. This cost-cutting approach increases firm profitability and promotes overall financial prosperity.

3. Continuous 24/7 assistance: By overcoming time zone variations, offshore outsourcing provides seamless operations by delivering continuous, round-the-clock business assistance via cutting-edge technology and excellent collaboration strategies.

4. Flexible Team Dynamics: Vendors can adjust team sizes based on company volume and requirements by hiring outsourced teams to work on specific projects for set periods of time. This versatility ensures that projects are completed on time, which saves money and meets deadlines.

Businesses that offer outsourcing services often employ a vendor or subsidiary model. Aeries, a leading provider of outsourcing services to PortCos and PEs, has adopted the Purpose-Built model, which incorporates the best features of both the vendor and subsidiary models. This next-generation service delivery model has enabled Aeries' clients to manage their human, technology, and operations delivery requirements in a cost-effective and efficient manner. Client firms do not have to worry about tax, regulatory, or compliance issues; instead, they can focus on scalability, innovation, and increased profitability.

Know more at: https://aeriestechnology.com/how-important-is-offshore-outsourcing-for-portfolio-companies/