Established companies residing in the United Kingdom, United States and many other countries will surely be feeling the pressure that Asian countries like India and China are putting on them. The level of manufacturing and services provided by Asian countries is expanding on a grand scale. The cheap cost of labour, and plenty of it, sets up these countries to reap the benefits. So how do you compete?
Wikipedia defines offshoring as “the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Typically this refers to a company business, although state governments may also employ offshoring.”
If you are a company that manufactures goods, or provides a service, then offshoring could be an option to lower costs and expand your business. It is important to note that offshoring is an ideal choice to increase profits however, it’s crucial to get professional advice from a reputable firm that specialises in offshoring before making any critical business decisions. There are multiple off shore models to consider such as Build-Operate-Transfer (BOT), Tactical Outsourcing, Offshore Development Centres (ODC), and Do-It-Yourself ODC. Once again speak to a professional before deciding which model will suit your company.
Now that you know what offshoring is, let’s take a look at the benefits it can provide for you:
- Risk sharing
- Process expertise and specialization
- Less operating and staffing costs
- Core process concentration
- Reduced cost of raw materials
If you think you are one of those businesses that could benefit from offshoring, or would like to know more or discuss further about offshoring for your business, please call us on 0845 838 2672 or email on firstname.lastname@example.org.