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Is Offshore Outsourcing a Viable Option?

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Everyone has an opinion about offshore outsourcing.  Outsourcing is either praised or cursed by those who talk about it.  Either way, it is a life saver for companies seeking to remain profitable in today’s highly competitive business environment where every dollar must count.  Or, it is loathed as a major cause of economic difficulties for those struggling to compete against companies that use outsourcing.

Either way, the fact remains that the world is now tightly joined through technology and as a result, the world as we know it, and how business is conducted will never be the same again.  If you have any need for labor that is not dependent upon physical location as to where you benefit from that labor, the question that you must ultimately answer for yourself is, “is offshore outsourcing a viable option?”

The Dirty Little Secret

There is a dirty little secret about offshore outsourcing that top administrators of most major corporations don’t necessarily want made public, and that is simply this.  They don’t want the public to know that every possible labor related cost that can be outsourced to offshore outsourcing firms is on their list to outsource.  Government restrictions or not, government incentives to hire locally or not, there is no amount of money that can be thrown at a business to keep them from wanting to outsource their labor related costs where their profits are directly related to labor costs.  Offshore outsourcing increases the bottom line and there are no ill side affects from using offshore outsourcing  for any labor related services.

An Ideal Opportunity for Small Business

Virtual Assistant Facility in Philippines

It used to be that only large corporations could afford to utilize offshore outsourcing as a way to reduce their labor costs, but today, there is as much opportunity for small business, even a single individual, to utilize offshore outsourcing as a way to speed up production time, increase productivity, and stretch an ever-tightening budget for those things that are necessary to compete in the 21st century.  With companies like Wal-Mart who outsource 80% or more of it’s product manufacturing by some accounts, small business must learn their tricks and trade secrets if they want to remain in business in the 21st century.

Offshore outsourcing can be the deciding factor of whether a small business will be able to compete or not now-a-days.  one of the areas where small business can save huge amounts of money is through that of outsourcing their back office and IT needs, and customer support services – all three which are a part of the 21st century business, whether you are a company of one or you are a company of 1,000.

Keep in mind that almost every major corporation (almost, because there might be a few remaining)  that depends upon competitive pricing in order to compete, have been using offshore outsourcing alternatives for as long as 20 years now.  And, since the rise of the Internet and the ability to access and utilize data and services via the Internet,  IT, back office, and customer support services have been outsourced to offshore outsourcing firms.

Is it a realistic alternative for you and your business?  Truth be told, every administrator that has ever had to face budget cutbacks in business where labor costs are concerned, or to find ways to be able to be more competitive in the market place, has considered offshore outsourcing as an alternative to rising labor costs and related expenses.

While major manufacturing companies were the first to realize the dramatic savings associated with offshore outsourcing, accessibility to offshore outsourcing has never been easier for individuals and small business who want to take advantage of the significant savings associated with offshore outsourcing, especially for back office, IT, and customer support services.     Take the automobile industry for instance.  With unionized labor costs holding most of America hostage – especially in the automotive industry – there has been a mass exodus from having parts to cars built in America.

Technology is no different

This is especially true with technology.  The cost of a programmer in the United States for instance is about $75/hr. with 7 to 10 years experience (degreed or not), even though you can find some unemployed programmers nowadays that might work for as little as $30/hr. if they are desperate.  Programming, depending on the level of talent being used, can cost as much as $500/hr for top level programming, i.e. building source code, complex databases, and high end enterprise systems. In places like India and the Philippines, a top level programmer that is college degreed with 7 to 10 years experience is about $25/hr.

If you were a company administrator and knew that a programming project that had to get done was going to take approximately 200 hours of programming, would you rather pay $15,000 for that project in programming expense or $7,000?   IF you have been wanting to have a Website for your business and price has always been the issue, you have no excuse for not having a Website.  Using an offshore outsourcing firm (like ITfamilyGroup for instance) will allow you to have a very functional AND AFFORDABLE Website built, and up and running in not time.

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