Offshore Outsourcing is around 10 Years old phenomenon which came into the picture due to cost-cutting at the center stage. American and European firms have started this trend for short-term solutions and receive the same benefits. And 10 years later, offshore outsourcing services have become basic need of these firms, instead of being just about cost reduction concept. Industry trend confirms that offshore outsourcing business is rapidly growing with a healthy rate of 30% and becoming a necessary revenue and growth plan for almost every existing organization. Specialization and innovation of emerging markets like Indian IT market is becoming more and more striking for the outsourcing industry.
In the practice of offshore outsourcing, firms of developed countries including American and European firms, request for IT-related work to the politically stable countries like India and China. By importing such work from these countries, these firms can gain lower labor costs, quality work, and/or tax savings benefits. In addition, offshore outsourcing services provider offers lots of other benefits in much affordable cost like more efficient and effective services in timely manner, access to high quality employees, maximum flexibility with workforce and much more. Offshore Outsourcing will always remain the best bet for American and European firms due to high labor cost as this way has a proven record to improve productivity at lower cost.
Offshore outsourcing has completely changed the nature of modern industry and companies are grabbing the opportunity and benefits it offers. Let’s see the main powerful factors of offshore outsourcing:
This is one of the most important factors of outsourcing a project. When a company needs technical skills to perform a job and they do not have the same expertise, and the company does not want to hire a fulltime employee, at this point of time they look for experienced people from the foreign market. In such cases, companies just choose an offshore outsourcing service provider to fulfill their requirement.
Many times, employees of a company are involved in big projects. And if there is any requirement for short-term project and company is reluctant to hire new employees for a very short period, they rely on outsourcing firms in order to obtain skilled experts.
In current unstable economy, most of the companies are working on high risk level. They want to reduce their employees often which become quite easy by engaging offshore expertise. However, it is not a very good decision to delegate all responsibilities to the outsourcing firms but this system allows reducing risk in many cases.
When a company transfers its secondary important projects and functions to an outsourcing, its management can give more time to the most important and core priorities. This saves valuable time for the management of the company.
India is a well-known country for outsourcing work and has become major hub for software development worldwide. Indian outsourcing industry is not only beneficial for cost saving but also helpful to provide brilliant brains to all over the world.
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