Today more than 60% of companies in North America have seriously considered moving a part or the whole of their technology services offshore. Already a substantial number of companies either have offshore units or have included off shoring in their business strategy. Considering that companies could achieve up to 40% of cost savings by moving work offshore, this starts as a simple mechanism to only lower costs. But today, outsourcing is a strategy to become more productive, more performing, and more agile, and yet save on costs and investments. Everyone from a Fortune 500 to a star up company is considering offshore outsourcing to:
- Reduce expenses
- Re-focus on core business issues
- Re-allocate capital investments
- Access a bigger resource pool
- Reduce time-to-market
- Reduce expenses – low cost factor
When resources are difficult to find in a local marketplace, then outsourcing is the definite answer. When competition is so fierce that cost savings are essential to survival, then outsourcing is a definite answer to the problem. When you do outsourcing to an offshore destination, you end up getting even better results – more cost savings and access to a bigger resource pool.
Typically in offshore outsourcing; companies end up saving anywhere between 20% and 40% overall on the production cost.