Even though the tech services industry may be in the middle of a downturn, outsourcing is not going anywhere, as it offers too many benefits. Outsourcing, now a staple business practice is not likely to meet its end in the near future. Here are five reasons why outsourcing is here to stay:
1. Make considerable cost savings
Although the cost of labor and other related costs are rising in popular outsourcing destinations like India, Brazil and Easter Europe, it is still considerably cheaper to offshore work, than to do it domestically. The recent data collected by Staff. Com has shown that while a senior programmer in the U.S may charge $90,000, the very same work can cost as low as $14,000 in India.
2. Fill the skills gap
You might have heard the same story from most technology giants. It has become extremely difficult to find workers with specialized skills in key areas like data analysis, the cloud and mobility to name a few. Global companies and businesses are still turning towards outsourcers to fill the gap, as it is tough to get access to good talent right now. Until the supply increases, outsourcing is definitely something that tech companies will be looking forward to.
3. Deal with visa shortages
It is not just skilled workers who are in short supply. The yearly allotment of 65,000 visas available to foreign workers is usually exhausted within the first few weeks of availability every year. After this, a business who wants to bring in a skilled worker from India has to wait for the next fiscal year to come around. Outsourcing is great way to send work offshore, if specialized workers cannot be hired to come to the onshore location.
4. Leverage numerous benefits
Even if outsourcing had no cost savings, companies would still hire offshore vendors, as outsourcing offers an entire range of benefits that are not restricted to the bottom-line. By having staff around the globe, a company can operate on a 24/7 basis and attend to the needs of customers. Outsourcing also enables companies to reach out to new markets and expand their customer base.
5. Hand over routine work
With routine and time-consuming operations like hardware maintenance and network monitoring outsourced to offshore locations, companies can get by with a lesser number of in-house employees and even use their existing staff members for strategic business initiatives or for supporting new projects.