Offshore Outsourcing Advantages

Offshore outsourcing is the practice of employing an external organization to discharge some business operations in a country except for the country in which the products or services are actually developed or manufactured. The four basic types of offshore outsourcing are:

  • ITO — Information Technology Outsourcing
  • BPO —  Business Process Outsourcing
  • Software R&D — offshore software development
  • KPO – Knowledge Process Outsourcing

Let us know delve into the advantages of offshore outsourcing:

  • Cheaper manpower  :

Manpower is possibly the most important and constant resource needed by any company. Due to constant growth and the complexity of innovative solutions in the IT business, the expenditure of employment of highly experienced specialists steadily increases. So, small and large companies undertake outsourcing services preferably in developing countries such as India and the Philippines which have a much less cost to the company, both variable and fixed, in comparison with the same professionals in the developed countries. Often, these workers are not a part of any union, which cuts down manpower costs to a greater extent.


  • Reduction of operational and recruitment costs:

 The cost of an outsourcing service in an offshore location is more than often cheaper than the costs incurred if the company performs the operation itself.Offshore outsourcing helps to save on investing in the latest technology, software and infrastructure, letting the outsourcing partner to handle the entire infrastructure.  Lower salaries and negatingon-site job maintenance cost is thus a major benefit.The company can save on team management problems as the offshore partner will be managing the team who does the work.

  • Increase in productivity :

Businesses makes use of time-zone difference to outsource to vendors, all kinds of outsourcing services to cover the 24-hour cycle as well as to be more productive to their own clients.By increasing productivity and effectiveness, a company can be more flourishing and better-organized for market challenges. Increasing productivity, thus provides a competitive advantage to the organisation.

  • More focus on strategizing and on core processes rather than the supporting ones:

A budding business often ends up involving its top managers in handling many tasks simultaneously—in the bargain-dissipating core strengths of a company.The organization can experience increased efficiency and productivity in non-core business processes with the assurance that the business processes will be carried out adeptly and within a speedy turnaround time. Consequently, the top and middle management can concentrate on growing the business.


  • Swiftness and Expertise:

Offshoring gives access to professional, expert and high-quality services. The organization can experience increased efficiency and productivity in non-core business processes and streamline business operations, thus making the organization more malleable to change.Outsourcing assures that business processes are being carried out efficiently, proficiently and within a fast turnaround time.

  • Risk-sharing:

Outsourcing certain components of your business process helps the organization to shift certain responsibilities to the outsourced vendor. In case of any urgency or emergency, the outsourced vendor being a specialist can plan the risk-mitigating factors better and bring out a solution to combat such a situation.

To keep the organization ahead of competition, concentrate on core competencies and make use of the latest technologies, outsourcing is the best possible method. More than 500 customers around the global have and are taking advantage of services offered by outsourcing agencies.


  1. By harry


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