It is not hard to
find why moving non-critical functions offshore makes
sound business sense. Among the reasons
are:
- In an increasingly competitive environment,
there is a greater need for the representatives of
the company to be available 24 X 7.
- Organizations find themselves struggling
to procure quality resources at reasonable costs.
- Organizations also face tremendous
pressure to lower operational costs, and offshore
centers cost as much as 40% less to run than local
centers performing the same function.
- The advent of technology makes communication
between local and offshore centers easy. Popular devices
include videoconferences over the Internet, shared
folders across locations, automatic replication of
critical databases across multiple locations, etc.
- Having an offshore office also provides
new business opportunities. For example, an organization
that has successfully moved its back office offshore
can perhaps think of offering similar back office
services to other companies.
- An offshore office also provides
organizations with accessibility to a global market,
thereby widening its reach. Frequently organizations
start doing business in the countries where they have
a back office because the existing infrastructure
makes it easier to take the step.
- Having an offshore office gives
the company improved business focus, with the local
offices concentrating on core competencies that increase
revenue and market share, while the offshore offices
focus on improving operational efficiency and therefore
profitability.
- Because of the significant cost
advantages that an organization gains by having an
offshore back office, it can afford larger data analysis
and data mining teams. This leads to improved business
practices that ultimately lead to greater profitability.
- Finally, the offshore initiative
also allows an organization to get the best skills
the world has to offer, taking wireless skills from
Europe, programming skills from Asia and so on. Having
the best of breed work for the organization increases
its competitiveness and helps it grow.
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