Offshore outsourcing is the new and most effective way of running a business. Big companies often outsource part of their non-core business operation to other countries where they have the opportunity to take advantage of a much lower labor cost. But there is more to it than a cheaper workforce. Offshore outsourcing services allow companies to perform their core responsibilities while focusing all their efforts in developing more business opportunities. Offshore outsourcing services to developing countries can provide key benefits and financial advantages on the part of the company utilizing BPO providers such as:

• The tax base is significantly decreased because the costs of agreement will be shouldered by the BPO provider.

• Companies will also save a huge amount of money on wage taxes.

• Companies using offshore outsourcing services are also not obliged to pay for vacation leaves which can also affect manufacturing processes due to lack of manpower when an employee is on leave.

• Hiring new employees can add up to the operation expenses of the company. When services are outsourced from offshore destinations, the BPO provider will be the one who will have to shoulder the training expenses and other related costs associated with employee education.

Offshore outsourcing services also provide manufacturing companies with a number of benefits. These include:

• Manufacturing companies will be able to focus their attention in looking for a viable solution when main production glitches arise instead of dividing company resources between manufacturing process and managerial operation.

• Companies will not be required to look for employees with the skills needed to perform a specific job description.

• The BPO providers that specialize on specific services can solve manufacturing problems faster because they know the ins and outs of running the operation.

Organizations today are more confident with offshore outsourcing services particularly in the IT sector. Information technology is a growing industry and it is now an important tool for improving a business. When these skills are not available in-house, outsourcing could be the key solution and companies will be able to get access to professional services that can guarantee top of the line results. There are offshore outsourcing destinations like the Philippines and India where BPO providers can offer a qualified workforce not only for IT requirements but for other business process requirements as well, including customer and technical support. Offshore outsourcing services may range from data entry to programming, call center services with IT enabled solutions, back office operations, web development services, and infrastructure. Other offshore outsourcing services are communication and networking, medical transcription, onsite services with customer support, relationship management, and community management among others.

With the ever increasing globalization of business, outsourcing services prove to be the most cost effective way of running a business geared towards expansion and growth. The growing presence of offshore outsourcing companies in countries like the Philippines and India is a sign that outsourcing is fast becoming the norm for increasing profits while reducing the company’s operational expenses.

Daven Michaels Author of the book Outsource This!