China, India, and the Philippines are some of the top offshoring destinations. These emerging economies offer affordable labor and cheaper operating costs compared to highly industrialized countries. Having cost-effective operations is one of offshoring's many benefits, thus making it a very attractive strategy for many companies based in the U.S. and Europe.
What can offshoring do to your company? Among the many benefits of offshoring are the following:
- Have more time for essential business operations. Transferring one or more business processes to a BPO service provider creates more time for a client-company to tackle other business processes, such as the creation of a new business roadmap or the development of a new product.
- Have access to an affordable yet world-class pool of manpower. The Philippines and India both possess skilled citizens who are also highly-educated. China, meanwhile, has vast numbers of affordable and skilled labor aside from a rich trove of natural resources. These nations have become top offshoring destinations - the Philippines and India for voice-based and knowledge-based services, and China for outsourced manufacturing services.
- Have a foothold in new markets. Aside from labor arbitrage, companies who rely on offshoring also get a foothold in new markets. Having a local presence boosts the company's brand in new markets, especially for relatively unknown companies. The company can also take advantage of local knowledge in enhancing and improving processes.
There are various reasons a company chooses to outsource work offshore to BPO service providers. As long as an offshoring relationship results to cost-effective operations and deliverables of the highest quality, offshoring will continue to benefit the client-company and their chosen BPO service provider.