Offshore Outsourcing: The Internet is a Huge Part of the Phenomenon

Today, the popularity of oversea technology services does not only come from strong education systems in offshore destinations such as Russia, India, China, and the Philippians. It is also largely attributed to the internet and the world wide web. In essence, the internet is a huge part of the offshore outsourcing phenomenon.

Offshore Outsourcing Destinations are Only a Click Away from Corporations and Companies in America

In the last few years, high-speed internet connections have spread to most parts of the world. This simply means that Indian programmers, Philippian’s call center agents, and other business process outsourcing destinations are just a mouse-click away from corporations in America, UK, and other consumers of offshore services.

American corporations are eager to drastically reduce the costs they incur on software developments and other tech projects. And, can you really blame them? They have to do what they have to do in order to remain in business, as long as it is legal.

Yet, those who do not wear these corporations’ shoes and don’t know how hard they pinch won’t see things from their own point of view. All they want is for offshore outsourcing to be abrogated in the United States.

The Salary Comparisons of Offshore Programmers and Onshore Programmers are Remarkable

In the United States, a programmer’s earning is about $80,000 on average in a year — put it side by side the $20,000 or less yearly earning of a programmer in India. This would give an idea of what U.S. corporations and firms are able to save as a result of heavily outsourcing IT to India.

Although some analysts argue that development project’s actual cost savings are not proportionate, the fact still remains that these American corporations accomplish significant cost savings by outsourcing information technology and other tech jobs to the best tech destinations such as India.

These analysts also added that the entire stages of a tech project — from the analysis to the design and deployment require a face-to-face meeting of the parties involved.

According to these analysts, cultural differences as well as communication factors boost costs and may also reduce effectiveness. Again, these factors raised by the analysts have been mastered over time and are no major obstacles to the successful outcome of offshore projects.

The bottom line is that corporations and firms still save significant cost by outsourcing to oversea workers. While it is estimated that the savings from tech outsourcing to India are about 20 percent — yet this does not appear to be the total picture, it could be far more. Even the 20 percent is significant enough to draw attention to offshoring.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.