Large Companies Moving from Offshore Outsourcing to “In-House” Offshore Centers
Companies such as Daimler Chrysler, GM, and Proctor and Gamble are flipping the switch from outsourcing, to in-house offshoring. Essentially companies are dissatisfied with their outsourcing vendors, to counter act this dissatisfaction but still find an advantage is cost savings offshore, companies are setting up offshore centers of their own in countries such as India and Bangladesh, that will be managed and operated in-house.
There are several advantages to having an “in-house” offshore center versus traditional outsourcing models besides cost savings. In outsourcing there is not only dissatisfaction from vendors, but also increasing hidden offshore costs, fears over IP security, and changing regulations. Managing and operating their own center, allows large companies to have more control over their projects, employees, transparency, quality, and overall lowers the risk of operating offshore while still taking advantage of a significant cost savings.
Small and medium-sized businesses need the same offshore advantages as large business to remain competitive. SMB’s may find it hard or nearly impossible to set-up and operate their own offshore center to take advantage of offshore cost savings, while avoiding issues such as hidden fees, security, and country wide regulations. To operate your own offshore center it takes a lot of knowledge in offshore operations, capital, and trustworthy people to set-up and manage an offshore center. Aside from project managers, you need country managers and operations managers to oversee every aspect of the operation. Even if a medium sized business may have the capital to operate their own center, it still takes knowledge, experience, and finding the right people with experience both in the US offshore operations.
Offshorent’s “Offshore Center as a Service” model was created to give small and medium sized business’s the same offshore advantage as large businesses. While avoiding all of the common issues with traditional outsourcing vendors, such as hidden costs, un-fair practices, lack of transparency, and control of their assigned talent. Offshorent gives small to medium sized business the closest experience to having their own employees and own offshore center, without the worry and headaches. Offshorent has the experience and management team in place to be the offshore operations manager, country manager, and take care of all the behind the small headaches associated with operating your own offshore center.