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Outsourcing Offshore – Is It Something Worth Doing?

Outsourcing Offshore – Is it Something Worth Doing

There’s always huge smile plastered on my face each time someone tries to find out the effectiveness of outsourcing from me. This is because there are tons of evidences and proofs about the efficacy of outsourcing solution for businesses of various kinds and sizes around the globe.

The Truth is; the Cost-Benefits of Offshore Outsourcing are not Being Exaggerated

Let me say this upfront; the cost benefits of offshore outsourcing are not being exaggerated. For instance, outsourced employees in countries like the Philippines are demanding for only 10-20 percent of the wages that US based employees earn; this surely shows that you can save big on employee expenses with outsourcing.

Here’s why; you do not have to worry about paying your outsourced employee those additional benefits that come with traditional hiring – workers compensation, employee insurance, retirement benefits, holiday pay package and most importantly, nothing like late-coming to work. Also, when you opt to outsource IT to an offshore location, there is no need to keep investing in software and hardware equipment, it is needless to keep parting with resources just to upgrade and maintain your company’s hardware and software infrastructure. In addition, you won’t have to spend in order to keep training in-house software developers on advanced and latest technologies.

From experience, it is obvious that many company owners do not well consider the real cost that comes with employing in-house staff.

When you hire an employee who gets a base salary of $60,000; you should be ready to incur the following additional expenses:

  • Admin expenses – $10,000
  • Training/orientation expenses – $2,000
  • Benefits: 401k, medical, dental plan – $19,500

This sums to $91,500 every year – which is a 60% rise on initial estimate.

Also, people are worried about huge cultural barriers when it comes to offshore outsourcing. It is no mistake that a huge number of multinational companies have selected the Philippines as their preferred offshore outsourcing location. Filipinos are known to possess superb English language skills. Besides, they are highly trained technical labor force.

An average Filipino understands the American lifestyle and will have no problem when it comes to communicating the “American way”. You will be glad to know that there are a lot of Filipinos that speak really good English without having a single tinge of native accent, which could give away their nationality. There are many good project managers in offshore outsourcing companies that have been trained to facilitate communication in order to define and clearly track objectives and results.

You just have to ensure that you outsource to reputable offshore outsourcing company, so that you won’t have to worry about anything.

Believe it or not, outsourcing has evolved to become an essential part of world-wide business solution and practice. Therefore, if you are still ignoring outsourcing, you are missing out big time!

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

One Response to “Outsourcing Offshore – Is It Something Worth Doing?”

  1. Gene Marks says:

    Greetings! Very beneficial advice in this article!
    Thanks a lot for sharing!

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