IT Outsourcing has become the most powerful, flexible and low-cost solution for both small and large enterprises in a digital age. Some companies have specific needs more suitable to collaboration with an offshore-based team, mainly for two reasons:
Cutting costs is their primary objective
The activities they want to outsource demand a specific time difference to cover a broader range of working hours
In addition to the benefits of nearshoring, offshore IT outsourcing offers even more dramatic cost savings with the same quality level of resources. The time coverage (GMT) allows to carry out operations during the night, at daytime rates.
Outsourcing is a powerful business tool used by millions of companies all over the world. Here’s a closer look at the advantages of outsourcing:
Direct savings are made by the cost difference in salaries, benefits, and operational expenses between most Western countries and offshore destinations like the Philippines. Indirect cost savings are often derived from the client’s ability to refocus on its core business and outsource secondary processes to a specialized external provider.
Outsourcing provides access to knowledge pools that you might not have inside your own company. In the old economy, big companies had their own departments for every business requirement. In the network economy, companies go back to their core business and use a network of external partners to take care of the rest.
Outsourcing provides a channel through which business can find readily available high-level expertise at affordable rates.
Flexibilty Capacity Management
Outsourcing enables your company to manage its capacity and staff. The task of hiring and managing personnel is passed on to an external provider with whom you can customize reporting and management standards based on your individual business needs.
Time Zone Coverage
By using external providers, you can cover time zones that are not covered by your domestic operation. Offshoring destinations like the Philippines have a workforce that is willing to work during non-regular office hours. Setting up a 24/7/365 operation is generally easier offshore.