Outsourcing has long been a trend in business. Even before it started to take its momentum, business started outsourcing. For instance, if a business needed manpower and would not want a direct-hire, they could always look for a manpower agency. While a business who could not afford to hire a costly Certified Public Accountant could always resort into external auditors – all of these are forms of outsourcing.
But today, it has evovled so much that when speaks of outsourcing, it invovles offshore operations. Companies resort into this kind of activities primarily to save cost. A good case in point is the “salary and wage factor.”
In the United States for instance, the minimum wage for highly skilled people such as programmers is approximately 20 to 40 dollars per hour and when you outsource it to third world countries such as the Philippines, the minimum wage is only barely 4 dollars per hour for skilled people. Now, it is up to you to calculate for the savings made!
Although technical capacity has long been an issue as well as the different set of standards from one country to another, before setting an outsourcing operations, principal companies conduct thorough training to ensure exact same quality of output the company gets.
Among of the many industries who resort into outsourcing and offshoring operations are the following:
- Information Technology
- Accounting
- Human Resources Management
- Digital and Graphic Design; and Animation
- Technical Support; Contact Center
- Content, Editing and Proofreading
Meanwhile, countries that qualify for offshore operations primarily due to its lower labor costs includes that of Philippines, India, China, Malaysia, Mexico, Russia, Indonesia and many more. At this point, you might want to review some offshore regulations and resort into this activity. It might just be the best way to expand your business globally.