Offshoring's Benefits

The benefits of offshoring often start with cost savings. But with experience, many companies often cite other benefits as even more important.

Major reasons for offshoring:
* direct labor-cost savings of 50% or more
* less risky way to expand (workers can be added without investing in additional office space or other overhead)
* greater workforce flexibility (the number of workers needed can be scaled up or down easily as business conditions warrant; accountants for example can contract for additional staff needed just during the tax-preparation season)
* recruitment/training/management of offshored staff isn't your problem
* expertise can be acquired cost effectively, allowing for more effective use of inhouse staff (i.e. small companies sometimes don't have enough work to justify hiring both a full-time bookkeeper and a financial controller. So the bookkeeper is either asked to do tasks beyond her ability, or a financial controller spends lots of time doing clerical work. Through offshoring, companies can arrange to pay for just the services they need, when they need them, and no more.)
* offshorers benefit by access to best-of-class practices (a foreign service provider specializes in providing that service, so are always incorporating the latest industry innovations and improvements. Thus they are able to perform that service much better and more efficiently than you can for yourself.)
* offshoring frees up money for more efficient investment (money saved on wages goes straight to the bottom line. That money, and money saved on overhead, is now available to invest in ways previously simply not possible.)
* offshorers experience improved company performance or customer satisfaction.(Fact is the Indian and Filipino workers employed by many foreign service providers are bright and highly trained. Foreign medical transcription companies for example employ trained nurses, even doctors. The impact on performance can be astounding the more lowly paid and regarded a task is in North America.)
* offshoring makes possible 24/7 service