OFFSHORE OUTSOURCING: Top 5 Benefits for Businesses

OFFSHORE OUTSOURCING: Top 5 Benefits for Businesses

Business terminology can often be confusing or misleading if you are unaware of the specific business phrases spoken. Today I would like to discuss “Offshore Out-Sourcing”.  This phrase continually comes to one’s attention and within the business market place, we should know what it means and what its benefits are. The dictionary definition of the term is as follows:

“Work done for a company by people in another country that it’s typically done at a much cheaper cost. Outside of costs, offshore outsourcing may be used to complete tasks that the company may not be equipped to handle in-house. Call centers are a popular service that is often outsourced to other countries. Offshore outsourcing is often blamed for increasing unemployment in a specific country due to the lack or elimination of jobs”

In other words, Offshore Outsourcing is relocating a part of the business to another country.

But, which are the best countries to outsource software development projects?

It has become common practice for businesses to outsource work as they try to reduce cost, manpower and project their business enterprise within the industry.  Competition is high and with ever-increasing government applied taxes and restrictions, most companies will look at every opportunity to reduce cost and maintain quality of service or product. Companies tend to look at offshore outsourcers to second or even third-tier countries where work is difficult to find and wages are below modern western minimum wage levels.

Offshore outsourcing

In this article, I will give some examples of offshore sourcing for business to you and we will look at the top 5 benefits of overseas outsourcing.

What if you are the managing director of a big corporation and you need to make some Finance and Accounting reports? After marketing research at your local place you found incredibly high prices and you got twice or three times fewer offers from some other countries. What will you choose? You are getting the same result and you pay less. So, you got my point!

As an example, we look at the IKEA Group. In 2013 IKEA announced an offshore outsourcing project with Wincor Nixdorf for setting the IT solutions to all the cash settlement units within all their branches. During 2014–2019 Wincor Nixdorf became not only a single offshore project software provider but developed its service to become external specialists in this subject area. IKEA not only lowered the work to run the stores, but it also made significant cost reductions and still realized improved success in its operations.

Another excellent example would be IBM. This huge corporation has cooperated with a  Canadian subsidiary company that has signed a $700 million contract with a local bank. As a result, IBM Canada is currently a Global Leader in bank informational structure maintenance, including its websites and call centers.  This unique maneuver within the marketplace opened so many doors producing IT opportunities significantly streamlining business finance.

Imagine this! “If you are the owner of a small photography studio and you need supporters to retouch millions of photos it would cost you a fortune to hire people nearby. But you can use resources from other countries and pay cheaper. And remember – Potentially you will get the same result!

However, what benefits do you get by employing an offshore methodology? 



One of the biggest benefits you will achieve is cost reduction. You will reduce capital expenses because any outsourcing makes the provision of workspace, equipment, and human capital somebody else’s problem.  As we PREVIOUSLY mentioned in the examples the same kind of work can be done in other countries at a fraction of cost-plus it doesn’t mean low-quality.


In the modern era of the Internet, you have access to specialists all over the world who you can choose and best afford. In most cases, this will highly improve the quality and efficiency of the work you’re doing.


Your customers will be pleased with the service 24/7. Or you could have tasks that you are not managing to do during the day time. As we know humans are not machines and need to rest. But there are countries where it is a day time when you and your employees are in bed. The people there are awake and ready to work for you.



Let’s suppose you are a pump manufacturer. Do you want to be distracted by IT or Accounting? All you want is its benefits! The obvious solution is offshore outsourcing.
You or your employees don’t need to multitask because we know that it is inefficient in most cases. Offshore outsourcing gets you to access the experts, IT or accounting and you can focus on your “core” tasks.


We can consider it as a part of the #1 item but labor cost doesn’t include salary expenses and rent for the office only but many details that can be hidden from your eyes at the first moment.

When you are hiring specialized staff you have to consider the costs of their training and continual development. And who will train them? And what if the employee decides to resign and move to your competitor? Offshore outsourcing company takes this headache away from you and you will not lose money or sleep if the company you contract fails to make your task done.

Cut the labour costs

And when you need to contact an offshore outsourcing company? Accordingly to the benefits above you can use project outsourcing and engage outsourcing companies for one-time or recruit specialists from another country on a long-term basis. Business process outsourcing company will provide the best options for your

IT solutions and your successful cooperation will improve your level significantly.

“Offshore outsourcing is primarily related to IT services and Web design but here you can find the most popular services for offshoring: Call center services, Research and Analysis, Software Development, Photo Editing Services, Transcription Services, Creative Design, Engineering Services, Finance and Accounting, Data Entry Service, Data Science Service, Translation Service, Web Analytics”


  • Specific
  • Measurable
  • Achievable
  • Realistic & Relevant
  • Work within a Time frame


Offshore outsourcing has been subject to a lot of discussions. From a political standpoint, it seems "stealing jobs". However, economists agree that offshoring reduces costs for companies and conveys benefits to clients and business owners. But remember this! If we like it or not, offshore outsourcing is equalizing the business world! 

Your customers want to get the maximum for the minimum price, and those people who are agitating for more local jobs are probably satisfied with goods made in China.

The spirit of the modern economy points out that the most competitive player will win everything.  And with the popularity of the Internet, it is no matter where that employer or employee is located.

Many companies outsource their IT development and implementation, website processing, and call centers. In the experts’ opinion, it will keep moving in the same direction. The number of business process outsourcing companies will grow as well. In general, outsourcing growth follows a strong collaboration between financial and informational technologies. They expand from single outsourcing projects to comprehensive and mutually advantageous cooperation.

If you also want to prompt your business forward, due to modern outsourcing services, then 

and our specialists will come up with useful solutions specific to your business needs!



Daniel Evdokimoff

Հեղինակ ՝ Daniel Evdokimoff
Հրապարակվել է ՝ Հունվար 09, 2020
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