Offshoring can be one of the most effective ways to reduce the cost of doing business in the modern global economy.
No longer do you have to restrict your business or enterprise to working exclusively under local conditions. Moving most or part of your business activity offshore to another country or region can make the cost of doing business a lot cheaper. It can also effectively improve the current position you hold within your industry, give you a global presence and more opportunities to grow your market penetration. It can even improve the efficiency and effectiveness of the service you provide your customers. Used strategically offshoring is the only logical way to advance and prosper.
Whether you manage website development internally, or you outsource to a local service provider or company, it is essential that your company has a good web presence. Both of these options can be costly. So let’s use this as an example to analyse the cost-effectiveness of offshoring and the competitive advantages for your company.
One of the most attractive destinations for offshoring is Vietnam. This is due to its relatively low wage and operating costs combined with providing a well-educated, hard-working workforce with high technological and scientific skills. Vietnam’s low labour costs, in comparison with other low-cost offshore providers such as India, are startling.
In Vietnam, a project manager earns 25% less than their Indian counterpart a technical lead 30% less, and a developer 55% less* So cost of labour is definitely a major advantage. But you also have the flexibility to increase and decrease staffing as needed or recruit for a single project. Of course, when you use a professional offshore staffing solutions company they can facilitate all the requirements including premises, recruitment, HR department, payroll, administration etc. and ensure your costs are kept to a minimum. Also, the advice and experience they can provide are invaluable.
If you hire offshore developers it enables you to focus on your core business at home while letting the offshore development team to focus on their own areas of expertise. Website development is an area where it makes perfect sense for businesses of any size to choose to use the offshore option. It saves money, time, and other overheads. Businesses big or small have enough commercial challenges to worry about without the additional burden of worrying about how their website is maintained, whether it’s optimized for search engines or responding to search results. These tasks can all be outsourced offshore at a fraction of the cost of a home-based operation and you still retain full control as they are your employees.
Hiring offshore developers who can build a state-of-the-art website and have many years of experience and the necessary technical expertise in places such as Vietnam can project and enhance what you have currently and even advise you on effective ways of generating better revenue options.
Offshore development is one of the most beneficial and cost-effective ways to outsource non-core parts of your business. These benefits are clearly demonstrated by the cost savings you can achieve. Professional offshore staffing services can look after everything for you while you retain full control of your offshore staff. It is an innovative way to use technology to increase capacity and reduce operational costs, achieve growth and produce successful business outcomes.
*analysis by JK Advisory LLC
