Portfolio Companies (PortCos) are forging strategic alliances to improve corporate strategy and core operations, which is a recent trend in private equity (PE). Through this partnership, PE firms are guaranteed a return on their investment while PortCos achieve optimal post-acquisition bottom-line outcomes. PortCos can focus on increasing profits by outsourcing their F&A, HR, Legal, Customer Support, Service Delivery, G&A, and IT functions.

Choosing an offshore outsourcing vendor allows you to use their knowledge and save money by working with a vendor located in another nation. There are many benefits to this technique that are worth briefly discussing.

1. Access a Broad Talent Pool and Expertise: Outsourcing to suppliers with a broad pool of experienced labor is beneficial for portfolio companies that want to grow quickly. When specialized skill sets are required or the PortCo is undertalented in a certain area, offshore is particularly beneficial.

2. Cost Efficiency Guaranteed: Portfolio Companies can achieve large cost savings - up to 70%, depending on the location—by offshoring. This cost-cutting measure boosts company margins and advances overall financial prosperity.

3. Continuous 24/7 Support: Overcoming time zone differences, offshore outsourcing ensures flawless operations by providing continuous, round-the-clock business support with cutting-edge technology and effective collaboration techniques.

4. Flexible Team Dynamics: Vendors can modify team sizes in accordance with company volume and requirements by using outsourced teams, who work on particular projects for predetermined lengths of time. This adaptability guarantees project completion on schedule, resulting in cost savings and deadline adherence.

Businesses that provide outsourcing services typically use the vendor or subsidiary model. Aeries, a leading provider of outsourcing services to PortCos and PEs, has embraced the Purpose-Built model, which combines the finest aspects of the vendor and subsidiary models. Aeries' clients have experienced cost-effective and efficient management of their personnel, technology, and operations delivery requirements because to this next-generation service delivery model. The client firms don't have to worry about tax, regulatory, or compliance difficulties; instead, they can concentrate on scalability, innovation, and growing profitability.

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