Outsourcing - the practice of using
external resources to complete work normally handled
by a company internally - is a familiar concept to
most. However, not many companies thoroughly understand
the benefits of offshore outsourcing. Yes, offshore
outsourcing can save money, but there are other reasons
as well. Here are some of the benefits to offshore
outsourcing and specifically to offshore staffing:
Reduce labor costs
Perceived as the principal reason
for offshore outsourcing and staffing, controling
labor costs can free up a lot of extra operating capital.
Another option is to increase the size of a development
team. A team of 5 developers based in the US would
cost the same as a team of 15 or 20 developers from
Cepios India.
Control capital costs
Offshore outsourcing can enable
you to convert fixed costs into variable costs, thus
freeing up capital for investment elsewhere. In the
early stage of a business this allows you to avoid
many large expenditures associated with hardware,
software, etc. Outsourcing also has the added benefit
of making your company more attractive to investors
since you are free to put more capital directly into
activities which produce revenue.
Increase efficiency
Companies that do everything themselves
have much higher research, development, marketing
and distribution expenses, all of which must be passed
on to customers. An outside provider’s cost
structure and economy of scale can give your firm
an important competitive advantage.
Start new projects quickly
Having an offshore outsourcing
team available to you enables you to start projects
faster than you would normally.
Focus on core business strengths
Having a virtual development team
at your disposal enables you to focus on the core
strengths of your business. Spend more time serving
your clients or doing research and development or
developing future strategic goals for your company.
Compete with larger firms
Most small companies cannot afford
to match the in-house software development staffs
of their larger competitors. By utilizing offshore
staffing services, you can increase the size of your
staff (virtually) without increasing your budget.
Reduce or eliminate cost of
benefits
With an offshore staffing team
assigned to you, you will not have to worry about
the HR tasks associated with taking care of employees.
Some of these include salaries, benefits, holidays/sick
days, taxes, medical insurance, disability, etc. Instead,
you can focus on the company’s primary business
function. |
