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.