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Benefits of Offshore Outsourcing

Offshore Outsourcing is not a new concept for the world. Several years a go software companies started offshore outsourcing to reduce their cost. It was the time when world realized how much cost can be reduced through offshore outsourcing. So the companies of other businesses also started offshore outsourcing to the extent they could. Now after ten years it has become a “do or die” situation and offshore outsourcing is not only a cost saving method. It has become an essential revenue and growth strategy for almost every existing corporation. Benefits of offshore outsourcing have the limitations of imagination of mind. Some potential benefits of offshore outsourcing are given below;

  • Cost Saving is another benefit of offshore outsourcing. In fact, outsourcing can reduce your fixed and revenue expenditures by a large amount. Film making industry is the best example of outsourcing where film making companies hire all the persons from low class actor to director. There are no fixed salaries, no office rent and nothing else. Actors, directors and support staff are hired for a project (film). Moreover, many US companies have opened their factories in India where they can hire labor force for just $4 a day per individual.
  • New Technology is used by the offshore outsourcing companies that enable them to serve their clients in a better way.
  • Changing Culture of an organization is most difficult thing to do. But organization that deals with offshore stakeholders by outsourcing can easily adapt to new culture. There are few numbers of permanent employees associated with these organizations so less resistance to change is faced by the organization.
  • Flexibility is the most important benefit of offshore outsourcing. A company can increase its business by many folds due to outsourcing. Software houses contact with the clients far across the ocean, get the project from them and assign that project to someone else who may be in some different state or country. Client wants his project to be completed on a certain date that is communicated to the person whom project is assigned. Now it is on the discretion of assignee to work an hour a day or 16 hours a day. Actors in film making industry work in different films at a time due to flexibility attached with the contracts.
  • Time Zone Advantage can be availed through offshore outsourcing. Many US companies has opened their factories in India where they can get benefit of Time Zone. Thus they are able to work twenty four hours a day.

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