Offshore Outsourcing is around 10 Years old phenomenon which came into the picture due to cost-cutting at the center stage.

1. Why Offshore Outsourcing Still Remains The Best Bet for American and European
Firms
Offshore Outsourcing is around 10 Years old phenomenon which came into the picture due to
cost-cutting at the center stage. American and European firms have started this trend for short-
term solutions and receive the same benefits. And 10 years later, offshore outsourcing services
have become basic need of these firms, instead of being just about cost reduction concept.
Industry trend confirms that offshore outsourcing business is rapidly growing with a healthy
rate of 30% and becoming a necessary revenue and growth plan for almost every existing
organization. Specialization and innovation of emerging markets like Indian IT market is
becoming more and more striking for the outsourcing industry.
In the practice of offshore outsourcing, firms of developed countries including American and
European firms, request for IT-related work to the politically stable countries like India and
China. By importing such work from these countries, these firms can gain lower labor costs,
quality work, and/or tax savings benefits. In addition, Offshore Outsourcing Services provider
offers lots of other benefits in much affordable cost like more efficient and effective services in
timely manner, access to high quality employees, maximum flexibility with workforce and much
more. Offshore Outsourcing will always remain the best bet for American and European firms
due to high labor cost as this way has a proven record to improve productivity at lower cost.
Offshore outsourcing has completely changed the nature of modern industry and companies are
grabbing the opportunity and benefits it offers. Let’s see the main powerful factors of offshore
outsourcing:
Acquisition of Exceptional Knowledge: This is one of the most important factors of
outsourcing a project. When a company needs technical skills to perform a job and they do not
have the same expertise, and the company does not want to hire a fulltime employee, at this point
of time they look for experienced people from the foreign market. In such cases, companies just
choose an offshore outsourcing service provider to fulfill their requirement.
Need of Short-Time Workers: Many times, employees of a company are involved in big
projects. And if there is any requirement for short-term project and company is reluctant to hire
new employees for a very short period, they rely on outsourcing firms in order to obtain skilled
experts.
Risk Reduction: In current unstable economy, most of the companies are working on high risk
level. They want to reduce their employees often which become quite easy by engaging offshore

2. expertise. However, it is not a very good decision to delegate all responsibilities to the
outsourcing firms but this system allows reducing risk in many cases.
Save Time: When a company transfers its secondary important projects and functions to an
outsourcing, its management can give more time to the most important and core priorities. This
saves valuable time for the management of the company.
India is a well-known country for outsourcing work and has become major hub for software
development worldwide. Indian outsourcing industry is not only beneficial for cost saving but
also helpful to provide brilliant brains to all over the world.