There are many factors that motivate companies to choose offshore outsourcing today. What are the primary and secondary factors that inspire a company to reach at the decision of offshoring their works and processes to another firm in a foreign country which they may have never even visited?

The most primary factor or motivation for the outsourcing companies is of course the cost reducing factor. By offshoring their work to Asian low wages countries like India, the offshoring US companies hope to substantially increase their savings. Another factor is the favorable time difference between the countries and the low turnaround time for completing job works. These offshore locations work on a 24 / 7, 365 days a year basis and have the support of "state of the art" secure technology.

It is true that outsourcing is a new way of working for many companies and it could take time for companies to settle comfortably. Also prior to offshoring a lot of thinking and planning has to be done and it should be made sure that outsourcing will be beneficial for the company and will help in achieving its objectives. Some of the reasons for offshore outsourcing include,

• Option of not employing a long term employee
• Lack of technical expertise within the company
• Reducing the level of risk
• Get more time for core processes
• Cutting managerial costs
• For better business solutions
• Expanding manufacturing capabilities

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Labels: BPO, LPO, Offshore outsourcing, offshoring, outsourcing factors