OffShore Outsourcing: An invincible strategy to double your profit

OffShore Outsourcing

Outsourcing is always a point of discussion at times of heavy workload or complex projects for smaller or bigger IT companies. It is like a horn of dilemma kind of situation for any entrepreneur to decide whether to outsource or to have an In-house team.

Though the concept of outsourcing has been in implementation since ages, it evolves nowadays largely with the evolution of technology. Technology makes it more practical, especially for the IT companies who like to deal with companies situated overseas. Hence, the question of “How to outsource IT Projects” is no longer be an issue. However, as mentioned above, the question “whether to Outsource or In-house?” remains as it is.

“Why to outsource and how outsourcing is beneficial?”

To understand this, let us first move to giants, who are outsourcing.

If we look at Samsung, Apple, or any mobile company, we know that they are outsourcing their mass manufacturing to China. Why these companies outsource to a far distance even when the transport cost adds in mobile segments? The answer is simple… Because it’s hard to ignore factors like cheap labour, government policies, technology expertise, a line of production etc in China which results in an annual cost of production (along with the transport) reduce to one third or even lower to cost if they make it in-house (or in their own country).

It’s like an all win strategy where an outsourcing company gets benefits of faster completion, low production cost and most importantly no burden of processes like hiring and employee management.

On a flip of a coin

The offshore company having some sort of expertise in a particular segment will get projects to work at a niche rates. The skilled people get employment while providing services to a company situated in some other country.

 Let us hop into IT Industry details.

Here are few top IT companies who have also preferred outsourcing.

Don’t get amazed! Yes, these companies also outsource.

  • Google: Leader in Web & internet service industry being the most valuable brand in the world.
  • MySQL: Most Commonly used Database platform company
  • Whatsapp : A cross-platform instant messaging apps with 1 billion plus users
  • Skype: One of the popular instant chat, video conferencing, voice messaging service provider serving millions of international corporate calls over the voip.
  • Slack: Slack is a cloud-based set of proprietary team collaboration tools and services offers persistent chat rooms (channels) organized by topic, as well as private groups and direct messaging
  • Alibaba:Alibaba’s market cap stood at US$486.27 billion. It is one of the top 10 most valuable and biggest companies in the world as of November 17
  • IBM :As of 2016, IBM offers services in categories of cloud computing, cognitive computing, commerce, data and analytics, Internet of Things, IT infrastructure, mobile, and security etc services in 177 countries.

Let’s check out some stats about outsourcing to India.

  • IT-BPM (Business Process Management) industry grew in double digits and the revenues from the IT-BPM exports stood at $108 billion. India accounted for 56 percent of the global outsourcing market compared with 52 percent in 2012.
  • India holds approximately 65% of all outsourced IT jobs.
  • Offshore outscoring helps to reduce IT Operation cost upto 45%.
  • 80% of European and US outsourcing firms ranked India as their number one outsourcing destination.
  • In the IT and business sectors, cost factors into 87% of outsourcing decisions.
  • 70% of consumer support in the world is handled in India and global statistics indicate that about 56% of offshoring partnerships to India comes from companies in the US.


Of course, there are both pros and cons of outsourcing. But if we do calculate, outsourcing is much more beneficial if planned properly and outsourced to an eligible agency who is capable to provide you the exact output you require.

Are you planning to outsource IT services? Feel free to ask any of your queries. Our outsourcing expert will be happy to assist you and solve your dilemma regarding any web services.


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